Extracted text: On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash $ 23, 308 Accounts Receivable Allowance for Uncollectible Accounts 48, B00 $ 4, 580 Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) 37, e00 72,100 28,980 37,000 Comnon Stack Retained Earnings 63, eee 39,eee Totals $172,400 $172,400 The $37,000 beginning belance of inventory consists of 370 units, each costing S100. During Janusry 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,68e units for 168,088 on account ($10s cach). January 8 Purchase 1,78e units for $187, 880 on account ($110 cach). January 12 Purchase 1,88e units for $287,000 on account ($115 cach). January 15 Return 135 of the units purchased on 3anuary 12 because of defccts. January 19 Sell 5,2ee units on account for $788,8ee. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753, eee from customers on accounts receivable. January 24 Pay $520,eee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3, 288. January 31 Pay cash for salarics during January, $121,000. The following information is available on January 31, 2021. a. At the end of Jenuary, 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 sccounts. The compony determines $4,700 of accounts receivoble on January 31 are past due, and 35% 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 receiveble balance colculsted in the general ledger.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid esch December 31. d. Accrued income taxes at the end of January ore $13,000. 5. Record closing entries. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account Field.) View traneaction liet Journal entry worksheet 1 Record the closing entry for revenue accounts. Note: Enter debits befare credits. Date General Journal Deblt Credit Jariuary 31, 2021 Record entry Clear ontry Vew general Jourmal
Extracted text: On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash $ 23, 308 Accounts Receivable Allowance for Uncollectible Accounts 48, B00 $ 4, 580 Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) 37, e00 72,100 28,980 37,000 Comnon Stack Retained Earnings 63, eee 39,eee Totals $172,400 $172,400 The $37,000 beginning belance of inventory consists of 370 units, each costing S100. During Janusry 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,68e units for 168,088 on account ($10s cach). January 8 Purchase 1,78e units for $187, 880 on account ($110 cach). January 12 Purchase 1,88e units for $287,000 on account ($115 cach). January 15 Return 135 of the units purchased on 3anuary 12 because of defccts. January 19 Sell 5,2ee units on account for $788,8ee. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753, eee from customers on accounts receivable. January 24 Pay $520,eee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3, 288. January 31 Pay cash for salarics during January, $121,000. The following information is available on January 31, 2021. a. At the end of Jenuary, 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 sccounts. The compony determines $4,700 of accounts receivoble on January 31 are past due, and 35% 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 receiveble balance colculsted in the general ledger.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid esch December 31. d. Accrued income taxes at the end of January ore $13,000. 5. Record closing entries. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account Field.) View traneaction liet Journal entry worksheet 1 Record the closing entry for revenue accounts. Note: Enter debits befare credits. Date General Journal Deblt Credit Jariuary 31, 2021 Record entry Clear ontry Vew general Jourmal