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The following information is available on January 31. a. Depreciation on the equipment for the month of January is calculated using the straight-line method.
The following information is available on January 31. a. 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 $4,500 and a two-year service life. b. The company estimated future uncollectible accounts and recorded Bad Debt Expense. The company determined $13,000 of accounts receivable on January 31 were past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. [Hint: Make an aging schedule using the ending balance in Accounts Receivable (from the general ledger) like we did on p. 60 of the Ch 5 notes to determine the total estimated uncollectible accounts. Record an adjusting entry for the difference between the 1) total estimated uncollectible accounts and 2) current balance in the Allowance account (from the general ledger).] c. Accrued interest expense on notes payable for January. d. Accrued income taxes at the end of January are $13,200. e. By the end of January, $3,200 of the gift cards sold on January 2 were redeemed (ignore cost of goods sold). General Requirement Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 10 11 17 The company estimated future uncollectible accounts and recorded Bad Debt Expense. The company determined $13,000 of accounts receivable on January 31 were past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past Note: Enter debits before credits. Date Jan 31 Bad Debt Expense Account Title Allowance for Uncollectible Accounts Debit Credit
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