The general ledger of Pop's Fireworks includes the following account balances in 2021 Credit Debit $ 23,400 47,000 $ 4,400 10,000 32,000 96,000 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (8%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Service Revenue Salaries Expense Utilities Expense Supplies Expense Totals 14,500 150,000 31,000 127.000 72,000 27,500 19.000 $326,900 $326,900 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above June 3. Provide additional services on account for $18,000. Al services on account include terms 2/10, 1/30. June 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $19,500. November 15 write off customer accounts of $5,900 as uncollectible The following information is available on December 31. The following information is available on December 31 a. Estimate that 10% of the balance of accounts receivable (after the transactions listed above) will not be collected b. Accrue interest on the note receivable of $32,000, which was accepted on October 1, 2021. Interest is due each September 30. No Date General Journal Debit Credit 1 Jun 03, 2021 18,000 Accounts Receivable Service Revenue 18,000 2 Jun 08, 2024 Cash Sales Discounts Accounts Receivable 10,290 210 10,500 3 Nov 15, 2021 5.900 Allowance for Uncollectible Accounts Accounts Receivable 5.900 4 Dec 31, 2021 6,360 Bad Debt Expense Allowance for Uncollectible Accounts 6,360 5 Dec 31, 2021 640 Interest Receivable Interest Revenue 640 6 Dec 31, 2021 Service Revenue Interest Revenue Retained Earnings 145,000 640 145,640 Dec 31, 2021 125,070 Retained Earnings Salaries Expense 72,000 5,900 3 Nov 15, 2021 Allowance for Uncollectible Accounts Accounts Receivable 5,900 6,360 4 Dec 31, 2021 Bad Debt Expense Allowace for Uncollectible Accounts 6,360 640 5 Dec 31, 2021 Interest Receivable Interest Revenue 640 6 Dec 31, 2021 145,000 640 Service Revenue Interest Revenue Retained Earnings 145,640 125,070 7 Dec 31, 2021 Retained Earnings Salaries Expense Utilities Expense Supplies Expense Bad Debt Expense Sales Discounts 72,000 27,500 19,000 6,360 210 Adjusted Pop's Fireworks Income Statement For Month Ended December 31, 2021 Revenue Service Revenue 145,000 640 Interest Revenue 0 0 $ 145,640 Total Revenue Expenses Salaries Expense Utilities Expense Supplies Expense Bad Debt Expense Sales Discounts Total Expenses Net Income 72,000 27,500 19,000 6,360 210 125,070 20,570 $ Adjusted Pop's Fireworks Balance Sheet December 31, 2021 Liabilities 14,500 Assets Current Assets Cash Accounts Receivable Supplies Interest Receivable Allowance for Uncollectible Accounts EEEEE Current Liabilities 33,690 Accounts Payable 48,600 10,000 640 (4.860) Total Current Liabilities 14,500 88,070 Total Liabilities 14,500 Total Current Assets ong-term assets Notes Receivable Land 32,000 96 000 Stockholders' Equity Common Stock Retained Earnings 150,000 51,570 0 201 570 216,070 Total Stockholders' Equity 216,070 Total Liabilities & Stockholders' Equity otal Assets $ $ Analyze the following information (a) By how much does the year end estimate of future uncollectible accounts reduce net income in 2021? 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