The general ledger of Pop's Fireworks includes the following account balances in 2024:

Accounts	Debit	Credit
Cash	$23,200
Accounts Receivable	46,500
Allowance for Uncollectible Accounts		$4,200
Supplies	9,700
Notes Receivable (8%, due in 2 years)	30,000
Land	95,000
Accounts Payable		14,300
Common Stock		146,000
Retained Earnings		30,900
Service Revenue		126,800
Salaries Expense	71,900
Utilities Expense	27,200
Supplies Expense	18,700
Totals	$322,200	$322,200

In addition, the following transactions occurred during 2024 and are not yet reflected in the account balances above:

June 3	Provide additional services on account for $17,000. All services on account include terms 2/10, n/30.
June 8	Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $10,000.
November 15	Write off customer accounts of $5,500 as uncollectible.

The following information is available on December 31.

1. Estimate that 10% of the balance of accounts receivable (after transactions in requirement 1) will not be collected. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger to determine the total estimate of uncollectible accounts.)
2. Accrue interest on the note receivable of $30,000, which was accepted on October 1, 2024. Interest is due each September 30.

No	Date	General Journal	Debit	Credit
1	June 03, 2024	Accounts Receivable	17,000
		Service Revenue		17,000
2	June 08, 2024	Cash	9,800
		Sales Discounts		200
		Accounts Receivable		10,000
3	November 15, 2024	Allowance for Uncollectible Accounts	5,500
		Accounts Receivable		5,500
4	December 31, 2024	Allowance for Uncollectible Accounts	3,950
		Bad Debt Expense		3,950
5	December 31, 2024	Interest Receivable	600
		Interest Revenue		600
6	December 31, 2024	Service Revenue		126,800
		Retained Earnings	126,800
7	December 31, 2024	Salaries Expense	71,900
		Utilities Expense	27,200
		Supplies Expense	18,700
		Retained Earnings		117,800

Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance.

Unadjusted Adjusted Post-closing

Post-closing

Pops Fireworks
Income Statement
For the year ended December 31, 2024
Revenue:
Service Revenue	270,600
	0
	0
	0
Total Revenue		$270,600
Expenses:
Salaries Expense	143,800
Utilities Expense	54,400
Supplies	9,700
Bad Debt Expense	(3,950)
Total Expenses		203,950
		$66,650

• Post-closing

Pops Fireworks
Balance Sheet
December 31, 2024
Assets	Liabilities
Current Assets:		Current Liabilities:
	$0
	0
	0
	0
	0	Total Current Liabilities	0
Total Current Assets	0	Total Liabilities	0
Long-term assets:		Stockholders Equity
			0
			0
			0
		Total Stockholders Equity	0
Total Assets	$0	Total Liabilities & Stockholders Equity	$0

• Income Statemen

Analyze the following information:
(a) By how much does the year-end estimate of future uncollectible accounts reduce net income in 2024?
Bad Debt Expense
(b) What is the ending balance of Allowance for Uncollectible Accounts?
Ending Balance of Allowance for Uncollectible Accounts
(c) What amount of cash is expected to be collected from accounts receivable?
Amount expected to be collected

• Balance Sheet