The $47,000 beginning balance of inventory consists of 470 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions:

January 3	Purchase 1,550 units for $170,500 on account ($110 each).
January 8	Purchase 1,650 units for $189,750 on account ($115 each).
January 12	Purchase 1,750 units for $210,000 on account ($120 each).
January 15	Return 185 of the units purchased on January 12 because of defects.
January 19	Sell 5,100 units on account for $765,000 The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22	Receive $749,000 from customers on accounts receivable.
January 24	Pay $520,000 to inventory suppliers on accounts payable.
January 27	Write off accounts receivable as uncollectible, $2,600.
January 31	Pay cash for salaries during January, $136,000.

The following information is available on January 31, 2024.

1. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.]
2. The company records an adjusting entry for $3,815. for estimated future uncollectible accounts.
3. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31.
4. The company accrues income taxes at the end of January of $14,000.

1.		Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 10) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.
2.		Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 11 to 14).
3.		Review the adjusted 'Trial Balance' as of January 31, 2024, in the 'Trial Balance' tab.
4.		Prepare a multiple-step income statement for the period ended January 31, 2024, in the 'Income Statement' tab.
5.		Prepare a classified balance sheet as of January 31, 2024, in the 'Balance Sheet' tab.
6.		Record the closing entries in the 'General Journal' tab (these are shown as items 15 and 16).

On January 1,2024 , the general ledger of Big Blast Fireworks includes the following account balances: \begin{tabular}{lrc} Accounts & \multicolumn{1}{c}{ Debit } & Credit \\ Cash & $25,300 & \\ Accounts Receivable & 45,000 & \\ Allowance for Uncollectible Accounts & & $3,700 \\ Inventory & 47,000 & \\ Land & 87,100 & \\ Accounts Payable & & 26,700 \\ Notes Payable (12\%, due in 3 years) & 47,000 \\ Common Stock & & 73,000 \\ Retained Earnings & & 54,000 \\ Totals & $204,400 & $204,400 \\ \hline \end{tabular}