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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 $44,000 beginning balance of inventory consists of 440 units, each costing $100. During January 2021 , Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,250 units for $133,750 on account ( $107 each). January 8 Purchase 1,350 units for $151,200 on account (\$112 each). January 12 Purchase 1,450 units for $169,650 on account ( $117 each). January 15 Return 170 of the units purchased on January 12 because of defects. January 19 Sell 4,200 units on account for $630,000. The cost of the units sold is determined using a FIF0 perpetual inventory system. January 22 Receive $617,000 from customers on accounts receivable. January 24 Pay $420,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,300. January 31 Pay cash for salaries during January, $133,006. 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 $5,400 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 $13,700. Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 2. Record adjusting entries on January 31 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Prepare an adjusted trial balance as of January 31, 2021

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