Required information On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash $22,100 Accounts Receivable. 37,000 Allowance for Uncollectible Accounts $3,300 Inventory 31,000 Land 63,100 Accounts Payable 31,900 Notes Payable (6%, due in 3 years) 31,000 Common Stock 57,000 Retained Earnings 30,000 Totals $153,200 $153,200 The $31,000 beginning balance of inventory consists of 310 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,000 units for $106,000 on account ($106 each). January 8 Purchase 1,100 units for $122,100 on account ($111 each). January 12 Purchase 1,200 units for $139,200 on account ($116 each). January 15 Return 105 of the units purchased on January 12 because of defects. January 19 Sell 3,480 units on account for $544,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $489,000 from customers on accounts receivable. January 24 Pay $319,000 to inventory suppliers on accounts payable.. January 27 Write off accounts receivable as uncollectible, $2,600. January 31 Pay cash for salaries during January, $115,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $5,410 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $12,400. 4. Prepare a multiple-step income statement for the period ended January 31, 2024. BIG BLAST FIREWORKS Multiple-Step Income Statement For the Month Ended January 31, 2024 Sales revenue Cost of goods sold Gross profit Salaries expense Bad debt expense Total operating expenses Operating income (loss) Interest expense Income before taxes Income tax expense Net income $ 544,000 356,800 5. Prepare a classified balance sheet as of January 31, 2024. (Amounts to be deducted should be indicated with a minus sign.) BIG BLAST FIREWORKS Classified Balance Sheet January 31, 2024 Assets 0 Total current assets 0 Total current liabilities Liabilities Total liabilities Stockholders' Equity 0 Total stockholders' equity. 0 Total assets $ 0 Total liabilities and stockholders' equity $ 0 Journal entry worksheet < 1 2 Record the entry to close the revenue accounts. Note: Enter debits before credits. Date January 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 Record the entry to close the expense accounts. Note: Enter debits before credits. Date January 31, 2024 General Journal Debit Credit Clear entry View general journal Record entry