The following information is available on January 31, 2018. a. Depreciation on the equipment for the month of January is calculated using the straight-ine method. At the time the equipment was purchased, the company estimated a residual value of $4,300 and a two-year service life. b ACME provides a quality assurance warranty on all sales, and estimates the liability associated with the warranty to be 1% of sales c During January an appeals court ruled against ACME in a lawsuit involving a customer injury. The customer sued ACME for d. During January a customer sued ACME for damages after inadvertently igniting a Vesuvius Spark Fountain in his backpack. ACME revenue. ACME accrues warranty expense on the last day of each month. The warranty liability covers the life of the product and so is classified as non-current. damages s following a firework mishap. ACME now believes it is probable that it will incur a $16,100 loss associated with the claim, but it intends to pursue further appeal and the case could drag on for another couple of years. believes the probability of incurring a loss on the claim to be remote. be collected or the remaining accounts receivable, the company estimates that 3% will not be collected. e. At the end of January, $22,000 of receivable are past due, and the company estimates that 30% of these accounts will not f ACME a g. ACME a h. By the end of January. $4,100 of the gift cards sold on January 2 have been redeemed for fireworks set-up services interest expense on notes payable for January income taxes at the end of January are $7,100 unal General Statement Balance Sheet Analysis Record each of the transactions listed ab ove in the 'General Journal tab (these are shown as items 1-11) assuming a FIFO perpetual inventory system. The transactions on January 15 and January 30 require two entries: one to record sales revenue and one to record cost of goods sold. FR the 'General Ledger and the 'Trial Bala tabs to see the effect of the transactions on the account balances. Record adjusting entries on January 31, 2018, in the 'General Journal' tab (these are shown as items 12-19). Record the closing entries in the 'General Journal' tab (these are shown as items 20 and 21). (The company prepares closing entries by closing the appropriate accounts directly to Retained Earnings. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show lesS View transaction list Journal entry worksheet 12 3 4 5 6 7 821 Sold gift cards totaling $10,200. The cards are redeemable fireworks set-up services within one year of the purchase date. The following information is available on January 31, 2018. a. Depreciation on the equipment for the month of January is calculated using the straight-ine method. At the time the equipment was purchased, the company estimated a residual value of $4,300 and a two-year service life. b ACME provides a quality assurance warranty on all sales, and estimates the liability associated with the warranty to be 1% of sales c During January an appeals court ruled against ACME in a lawsuit involving a customer injury. The customer sued ACME for d. During January a customer sued ACME for damages after inadvertently igniting a Vesuvius Spark Fountain in his backpack. ACME revenue. ACME accrues warranty expense on the last day of each month. The warranty liability covers the life of the product and so is classified as non-current. damages s following a firework mishap. ACME now believes it is probable that it will incur a $16,100 loss associated with the claim, but it intends to pursue further appeal and the case could drag on for another couple of years. believes the probability of incurring a loss on the claim to be remote. be collected or the remaining accounts receivable, the company estimates that 3% will not be collected. e. At the end of January, $22,000 of receivable are past due, and the company estimates that 30% of these accounts will not f ACME a g. ACME a h. By the end of January. $4,100 of the gift cards sold on January 2 have been redeemed for fireworks set-up services interest expense on notes payable for January income taxes at the end of January are $7,100 unal General Statement Balance Sheet Analysis Record each of the transactions listed ab ove in the 'General Journal tab (these are shown as items 1-11) assuming a FIFO perpetual inventory system. The transactions on January 15 and January 30 require two entries: one to record sales revenue and one to record cost of goods sold. FR the 'General Ledger and the 'Trial Bala tabs to see the effect of the transactions on the account balances. Record adjusting entries on January 31, 2018, in the 'General Journal' tab (these are shown as items 12-19). Record the closing entries in the 'General Journal' tab (these are shown as items 20 and 21). (The company prepares closing entries by closing the appropriate accounts directly to Retained Earnings. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show lesS View transaction list Journal entry worksheet 12 3 4 5 6 7 821 Sold gift cards totaling $10,200. The cards are redeemable fireworks set-up services within one year of the purchase date