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[The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:

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[The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: The $47,000 beginning balance of inventory consists of 470 units, each costing $100. During January 2021, Big Biast Fireworks had the following inventory transactions: January 3 purchase 1,550 unita for $170,500 on account ($110 each). January 8 parchase 1,650 units for $189,750 on account ( $115 each). January 12 Purchase 1,750 units for $210,000 on account ($120each). January 15 Return 185 of the units purchased on January 12 because of defects. January 19 sel1 5,100 units an account for $765,000. The cost of the unita sold is determined using a FtFo perpetual inventory aystem. January 22 Receive $749,000 from customers on accounts receivable, January 24 Pay $520,000 to inventory suppliern on accounts payable. January 27 write otf accounts recelvable as uncollectible, $2,600. January 31 Pay cash for salaries during January, $136,000. The following information is available on January 31,2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $5,700 of accounts receivable on January 31 are past due, and 40% 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.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $14,000. 4. Prepare a multiple-step income statement for the period ended January 31,2021

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