Required information

The general ledger of Pop's Fireworks includes the following account balances in 2021:

Accounts	Debit				Credit
Cash	$	22,800
Accounts Receivable		45,500
Allowance for Uncollectible Accounts					$	3,800
Supplies		9,100
Notes Receivable (8%, due in 2 years)		26,000
Land		93,000
Accounts Payable						13,900
Common Stock						138,000
Retained Earnings						30,700
Service Revenue						126,400
Salaries Expense		71,700
Utilities Expense		26,600
Supplies Expense		18,100
Totals	$	312,800			$	312,800

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 $15,000. 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 $9,000.
November		15		Write off customer accounts of $2,300 as uncollectible.

Required: (previous work completed) 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

A) Jun 03, 2021: Debit- Accounts Receivable:$15,000 / Credit-Service Revenue: $15,0002

B) Jun 08, 2021: Debit- Cash $8,820 / Debit- Sales Discounts $180 / Credit- Accounts Receivable $9,000

C) Nov 15, 2021 Debit- Allowance for Uncollectible Accounts: $2,300 / Credit- Accounts Receivable $2,300

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.) (Previous work completed)

1. Estimate that 10% of the balance of accounts receivable (after transactions in requirement 1) will not be collected.
2. Accrue interest on the note receivable of $26,000, which was accepted on October 1, 2021. Interest is due each September 30.

A) Dec 31, 2021: Debit- Bad Debt Expense $600 / Credit- Allowance for Uncollectible Accounts $600

B) Dec 31, 2021: Debit- Interest Receivable $520 / Credit-Interest Payable $520

3. Prepare an adjusted trial balance as of December 31, 2021. (Previous work completed)

Debits: Cash $31,620 / Accounts Receivable $49200 / Supplies $9100 / Notes receivable $26000 / Land $93000 / Sales Discount $180 / Salaries Expenses $71700 / Utilities Expense $26600 / Supplies Expense $18100 / Total Debits: 325,500

Credits: Allowance fo Uncollectible Accts $1500 / Accounts Payable $13900 / Common Stock $138,000 / Retained Earning $30700 / Service Revenue $141400 / Total Credit $325,500

***(Do I have the above adjusted trail balance correct?)

4. Prepare an income statement for the period ended December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

5. Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

A) Record the closure of revenue accounts for January 21st, 2021.

B) Record the closure of expense accounts for January 31st 2021.

7. Analyze the following information: (Work completed below)

1. By how much does the year-end estimate of future uncollectible accounts reduce net income in 2021?

2. What is the ending balance of Allowance for Uncollectible Accounts?

3. What amount of cash is expected to be collected from accounts receivable?

Bad debt expense: $3420 Ending balance of allowance for uncollectible accounts: $4920 Amount expected to be collected: $44,2280