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 $196,000 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. Jenuary 19 Sel1 5,700 units on account for $855,000. The cost of the units sold is determined using a firo perpetual inventory system. January 22 Receive $837,000 fron customers on accounts receivable. January 24 Pay $620,660 to inventory suppliers on accounts payable. January 27 write off accounts receivable as uncollectible, $2,800. January 31 Pay cash for salaries during January, \$138,000. 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 returned on January 15 and the units assumed sold (FFFO) 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. 5. Prepare a classified balance sheet as of January 31, 2024. (Amounts to be deducted should be indicated with a minus sign.) 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 $196,000 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. Jenuary 19 Sel1 5,700 units on account for $855,000. The cost of the units sold is determined using a firo perpetual inventory system. January 22 Receive $837,000 fron customers on accounts receivable. January 24 Pay $620,660 to inventory suppliers on accounts payable. January 27 write off accounts receivable as uncollectible, $2,800. January 31 Pay cash for salaries during January, \$138,000. 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 returned on January 15 and the units assumed sold (FFFO) 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. 5. Prepare a classified balance sheet as of January 31, 2024. (Amounts to be deducted should be indicated with a minus sign.)
