Required information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (99, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 22,300 37,500 $ 3,500 32,000 64,600 31,400 32,000 58,000 31,500 $156,400 $156,400 The $32,000 beginning balance of inventory consists of 320 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,100 units for $117,700 on account ($107 each). January 8 Purchase 1,200 units for $134,400 on account ($112 each). January 12 Purchase 1,300 units for $152, 100 on account ($117 each). January 15 Return 110 of the units purchased on January 12 because of defects. January 19 Sell 3,700 units on account for $555,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $533,000 from customers on accounts receivable. January 24 Pay $363,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,700. January 31 Pay cash for salaries during January, $116,000. The following information is available on January 31, 2021. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each b. The company estimates future uncollectible accounts. The company determines $4,200 of accounts receivable on January 31 are past due, and 40% 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.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $12,500. View transaction list Journal entry worksheet 10 > Record purchase of 1,200 units for $134,400 on account ($112 each). Note: Enter debits before credits. General Journal Debit Credit Date January 08 Record entry Clear entry View general Journal Journal entry worksheet 14 Record purchase of 1,300 units for $152,100 on account ($117 each), Note: Enter debits before credits. Date General Journal Debit Credit January 12 Record entry Clear entry View general journal Journal entry worksheet Record the return of the 110 units purchased on January 12 because of defects. Note: Enter debits before credits Date General Journal Debit Credit January 15 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 7 8 9 10 > Record the sale of 3,700 units inventory on account. Note: Enter debits before credits. General Journal Debit Credit Date January 19 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 7 8 10 > Record the cost of inventory sold. Note: Enter debits before credits. Date General Journal Debit Credit January 19 Record entry Clear entry View general journal Journal entry worksheet Record the receipt of $533,000 from customers on accounts receivable. Note: Enter debits before credits General Journal Debit Credit Dato January 22 Record entry Clear entry View general journal Journal entry worksheet 00 9 10 > 8 8 2 3 4 5 6 7 10 Record the write off of accounts receivable as uncollectible, $2,700. Note: Enter debits before credits. Debit General Journal Date Credit January 27 Record entry Clear entry View general journal Record the payment of cash for cash for salaries during January, $116,000. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal Prev 1 2 3 6 of 6 Next > 11
