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[The following information applies to the questions displayed below.) On January 1 2021, the general ledger of ACME Fireworks includes the following account balances: 17
[The following information applies to the questions displayed below.) On January 1 2021, the general ledger of ACME Fireworks includes the following account balances: 17 Credit Debit $ 25,900 47,800 $ 5,000 20,800 54,00 19,eee 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 2,300 29,300 58,000 43,000 29,900 $167,500 $167,5ee During January 2021, the following transactions occur January 2 Sold gift cards totaling $9,60e. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $155,000. January 15 Firework sales for the first half of the month total $143,000. All of these sales are on account. The cost of the units sold is $77,808. January 23 Receive $126,200 from customers on accounts receivable. January 25 Pay $98,eee to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,600. January 30 Firework sales for the second half of the month total $151,000. Sales include $14,000 for cash and $137,000 on account. The cost of the units sold is $83,500. January 31 Pay cash for monthly salaries, $52,800. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,600 and a two-year service life. The company estimates future uncollectible accounts. The company determines $19,000 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 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger) Accrued interest expense on notes payable for January Accrued income taxes at the end of January are $13,800. . By the end of January, $3,800 of the gift cards sold on January 2 have been redeemed. Ianunn 31 for the above transactions (lf na entry is required for a particular transaction/event, Answer is not complete. ants NO Date General Journal Debit Credit 1 January 31 1.392 Depreciation Expense Accumulated Depreciation 1 392 2. January 31 Bad Debt Expense Allowance for Uncollectible Accounts oo 580 3 January 31 Interest Expense Interest Payable 580 4 January 31 Income Tax Expense Income Tax Payable 5 January 31 Deferred Revenue Sales Revenue
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