! Required information [The following information applies to the questions displayed below.) The general ledger of Pop's Fireworks includes the following account balances in 2021: Credit Debit $ 21,200 41,500 $ 2,200 6,700 10,000 85,000 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (8%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Service Revenue Salaries Expense Utilities Expense Supplies Expense Totals 12,300 106,000 29,900 124,800 70,900 24, 200 15,700 $275, 200 $275,200 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $7,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $5,000. November 15 Write off customer accounts of $1,500 as uncollectible. 4. Prepare an income statement for the period ended December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) X Answer is complete but not entirely correct. POP'S FIREWORKS Income Statement For the year ended December 31, 2021 Revenues: Service Revenue $ 131,800 Interest Revenue 200 Sales Discounts (100) 131,900 Net revenues Expenses: Salaries Expense Utilities Expense Supplies Expense Bad Debt Expense (70,900) (24,200) (15,700) 3,500 Total Expenses Net income (107,300) 24,600 $ 5. Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. POP'S FIREWORKS Balance Sheet December 31, 2021 Assets Liabilities Cash Accounts Payable S 12,300 Accounts Receivable Less: Allowance Supplies $ 21,200 41,500 X 2,200 X 43,700 15,700 80,600 12,300 Total Current Assets Land Total Current Liabilities Stockholder's Equity 85,000 Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 106,000 29,900 X 135,900 Total Assets 165,600 $ 148,200 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Date General Journal Credit Debit 110,900 X 1 Jan 21, 2021 Income Tax Expense Salaries Expense Utilities Expense Sales Discounts Supplies Expense x x x 70,900 x 24,200 X 100 X 15,700 X 2 Jan 31, 2021 x 129,800 x Service Revenue Income Tax Expense X 129,800 x 7. Analyze the following information: a. By how much does the year-end estimate of future uncollectible accounts reduce net income in 2021? b. What is the ending balance of Allowance for Uncollectible Accounts? c. What amount of cash is expected to be collected from accounts receivable? Answer is complete but not entirely correct. a. b. Bad Debt Expense Ending Balance of Allowance for Uncollectible Accounts Amount expected to be collected 3,500 4,200 700 X c. $
