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 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 Debit Credit $ 23,800 48,000 $ 4,800 10,600 36,000 98,000 14,900 158,000 31,200 127,400 72,200 28,100 19,600 $336,300 $336,300 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: 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 $20,000. 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 $11,500. November 15 Write off customer accounts of $2,880 as uncollectible. 2. Record the following adjusting entries on December 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) a. Estimate that 10% of the balance of accounts receivable (after transactions in requirement will not be collected b. Accrue interest on the note receivable of $36,000, which was accepted on October 1, 2021. Interest is due each September 30. View transaction list 1 2 > Record the estimate of future bad debts. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2021 Record entry Clear entry View general journal 3. Prepare an adjusted trial balance as of December 31, 2021. POP'S FIREWORKS Adjusted Trial Balance December 31, 2021 Debit Accounts Credit 4. Prepare an income statement for the period ended December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) POP'S FIREWORKS Income Statement For the year ended December 31, 2021 Revenues: Net revenues 0 5. Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) POP'S FIREWORKS Balance Sheet December 31, 2021 Assets Liabilities 0 Total Current Assets 0 0 Total Current Liabilities Stockholder's Equity Total Stockholders' Equity Journal entry worksheet 1 2 > Record the closure of revenue accounts. Note: Enter debits before credits. General Journal Debit Credit Date Jan 21, 2021 ro 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? a Bad Debt Expense b. Ending Balance of Allowance for Uncollectible Accounts Amount expected to be collected c
