Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Saved Required information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of 3D Family Fireworks includes the

image text in transcribed
image text in transcribed
Saved Required information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Credit Debit $ 23,900 13,600 $ 1,400 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (61, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totala 2,500 20,000 77,000 7,200 96,000 32,400 $137,000 $137,000 During January 2021, the following transactions occur January 2 Provide services to customers for cash, $35,100. January 6 Provide services to customers on account, $72,400. January 15 Write oft accounts receivable as uncollectible, $1,000. January 20 Pay cash for salaries, $31,400. January 22 Receive cash on accounts receivable, $70,000. January 25 Pay cash on accounts payable, $5,500. January 30 Pay cash for utilities during January, $13,700. a. The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 20% 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.) b. Supplies at the end of January total $700. c. Accrued interest revenue on notes receivable for January, Interest is expected to be received each December 31 d. Unpaid salaries at the end of January are $33,500. Saved Required information View transaction list Journal entry worksheet 1 2 3 4 > The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts Note: Enter debits before credits Date General Journal Debit Credit January 31 Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions