The $49,000 beginning balance of inventory consists of 490 units, each costing $100. During January 2024 . Big Biast Fireworks had the following inventory transactions: January 3 Purchase 1,750 units for $196,00e on account ( $112 each). January 8 Purchase 1,850 units for $216,450 on account ( $117 each). January 12 Purchase 1,950 units for $237,900 on account (\$122 each). January 15 Return 195 of the units purchased on January 12 because of defects. January 19 Sel1 5, 700 units on account for $855,90e. The cost of the units sold is deternined using a fifo perpetual inventory systee. January 22 Receive $837,000 from custoners on accounts receivable. January 24 Pay $620,000 to inventory suppliers on accounts payable. lanuary 27 write off accounts receivable as uncollectible, \$2,800. January 31 Pay cash for salaries during lanuary, \$138,0e0. The following information is available on January 31,2024. a. 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 retumed on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,530 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $14,200. Required information On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: The $49.000 beginning balance of inventory consists of 490 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: 3anuary 3 Purchase 1,750 units for $196,000 Dn account (\$112 each). January 8 Purchase 1,850 units for $216,450 on account (\$117 each). January 12 Purchase 1,950 units for $237,900 on account (\$122 each). January 15 Return 195 of the units purchased on January 12 because of defects. January 19 Sel1 5 , 780 units on account for $855,000. The cost of the units sold is deterained using a FIFO perpetual inventory system. January 22 Receive $837, 690 from customers on accounts receivable. January 24 Pay $620,090 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,809. January 31 Pay cash for salaries during January, \$138, 000 . The following information is avallable on January 31,2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January i2 are expected to selt in February for only $100 each. [ / hint Determine the number of units remaining from daniary 12 atlet subtracting the units returned on January 15 and the units assumed sold (FiFo) on Jamary tig. b. The company records an adjusting entry for $3,530 for estimated future uncollectible acceunts c. The company accutes interest on notes payable for January lnterest is expected to be paid each December 3t d. The company accrues income taxes ot the end of lanaary of $14,200. a. At the end of January, the compary estimates that the remaining units of inventocy purchased on Januaty 12 ate expected io sehin February for only $100 each. [Hint: Determine the number of units remaining from Janaary 12 afer subtracting the units returned an January 15 and the units assumed sold (FIFO) on January 19.) b. The company records an adjusting entry for $3.530 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be pald each December 31. d. The company accrues income taxes at the end offanuary of $14,200. 2. Record adjusting entries on January 31 for the above transactions. (If no entry is required for a transaction/event, select 'No Journal Entry Required" in the first account field.)
