Saved Credit Debit $ 59,700 27,000 $3,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,300 24,000 165,000 15,800 230,000 64,000 $313,000 $313,000 During January Year 1, the following transactions occur: January 1 Purchase equipment for $20,500. The company estimates a residual value of $2,500 and a six-year service life. January 4 Pay cash on accounts payable, $10,5ee. January 8 Purchase additional inventory on account, $92,900. January 15 Receive cash on accounts receivable, $23,000 January 19 Pay cash for salaries, $30,800. January 28 Pay cash for January utilities, $17,500. January 3e Sales for January total $230,000. All of these sales are on account. The cost of the units sold is $120,000 Information for adjusting entries: o. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $4,000 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January, d. Unpaid salaries at the end of January are $33,600. e. Accrued income taxes at the end of January are $10,000 4. Prepare a multiple-step income statement for the period ended Multiple-Step Income Statement For the month ended January 31, Year 1 $ $ 0 Expenses Total Operating Expenses 0 0 0 e $ 0