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On January 1, 2021, 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 2021, 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 3,400 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, 2021.

1. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
2. The company estimates future uncollectible accounts. The company determines $4,100 of accounts receivable on January 31 are past due, and 45% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
4. Accrued income taxes at the end of January are $12,400.

5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

No Date General Journal Debit Credit 1 January 03 106,000 Inventory Accounts payable 106,000 2 January 08 122,100 Inventory Accounts payable 122,100 January 12 139,200 Inventory Accounts payable 139,200 4 January 15 12,180 Accounts payable Inventory 12,180 5 January 19 Accounts receivable 544,000 Sales revenue 544,000 6 January 19 373,940 Cost of goods sold Inventory 373,940 7 January 22 Cash 489,000 Accounts receivable 489,000 8 January 24 Accounts payable 319,000 Cash 319,000 9 January 27 2,600 Allowance for uncollectible accounts Accounts receivable 2,600 10 January 31 115,000 Salaries expense Cash 115,000 No Date General Journal Debit Credit 1 January 31 Costs of goods sold 1,680 Inventory 1,680 2 January 31 Bad debt expense 5,410 Allowance for uncollectible accounts 5,410 3 January 31 155 Interest expense Interest payable 155 January 31 12,400 Income tax expense Income tax payable 12,400 Credit 6,110 68,020 155 BIG BLAST FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Cash $ 77,100 Accounts receivable 89,400 Allowance for uncollectible accounts Inventory 10,500 Land 63,100 Accounts payable Interest payable Income tax payable Notes payable Common stock Retained earnings Sales revenue Cost of goods sold 375,620 Salaries expense 115,000 Bad debt expense 5,410 Interest expense 155 Income tax expense 12,400 Totals $ 748,685 12,400 31,000 57,000 30,000 544,000 $ $ 748,685 BIG BLAST FIREWORKS Multiple-step Income Statement For the year ended January 31, 2021 $ 544,000 375,620 Sales revenue Cost of goods sold Gross profit $ 168,380 Bad debt expense 5,410 Salaries expense 115,000 120,410 Total operating expenses Operating income (loss) Interest expense 47,970 155 Income before taxes Income tax expense 47,815 12,400 35,415 Net income $ BIG BLAST FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities Cash $ 68,020 $ 77,100 Accounts payable Interest payable 10,500 Income tax payable 155 12,400 Inventory Accounts receivable Less: Allowance $ 89,400 Total current assets 80,575 31,000 Land 89,400 177,000 Total current liabilities Notes payable 63,100 Total liabilities Stockholders' Equity Common stock 111,575 57,000 65,415 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 122,415 $ 233,990 Total assets $ 240,100