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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

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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: 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 \& 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 sel1 3,700 units on account for $555,000. The cost of the units sold is determined using a pifo 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. 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. 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. At the end of January, $4,200 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. 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. 3. Prepare an adjusted trial balance as of January 31, 2021

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