• The company estimates future uncollectible accounts. the company determines $23,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Record bad debts at the end of January.

7 January 28 6,000 Allowance for Uncollectible Accounts Accounts Receivable 6,000 January 30 Cash Accounts Receivable Sales Revenue 11,000 144,000 155,000 9 January 30 85,500 Cost of Goods Sold Inventory 85,500 10 January 31 53,200 Salaries Expense Cash 53,200 Exercise 8-18 Complete the accounting cycle (LO8-1,8-2, 8-4, 8-6) [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 26,300 48,600 $ 5,400 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 21,200 58,000 21,000 2,700 29,700 62,000 47,000 28,300 $175, 100 $175, 100 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $10,400. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $159,000. January 15 Firework sales for the first half of the month total $147,000. All of these sales are on account. The cost of the units sold is $79,800. January 23 Receive $126,600 from customers on accounts receivable. January 25 Pay $102,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,000. January 30 Firework sales for the second half of the month total $155,000. Sales include $11,000 for cash and $144,000 on account. The cost of the units sold is $85,500. January 31 Pay cash for monthly salaries, $53,200. General Journal Credit No 1 Date January 02 Debit 10,400 Cash Deferred Revenue 10,400 2 January 06 159,000 Inventory Accounts Payable 159,000 3 January 15 147,000 Accounts Receivable Sales Revenue 147,000 4 January 15 Cost of Goods Sold 79,800 Inventory 79,800 5 January 23 126,600 Cash Accounts Receivable 126,600 January 25 102,000 Accounts Payable Cash 102,000