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1. Depreciation on the equipment for the month of January is calculated using the straight-line...

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Accounting

1. 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 $3,400 and a two-year service life. 2. At the end of January, $12,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected. 3. Accrued interest expense on notes payable for January. 4. Accrued income taxes at the end of January are $13,100. 5. By the end of January, $3,100 of the gift cards sold on January 2 have been redeemed.

2. Record the adjusting entries on January 31 for the above transactions.

Record the depreciation for the month of January

Record bad debts at the end of January

Accrued interest on notes payable for January

Accrued income taxes at the end of January are $13,100

By the end of January, $3,100 of the gifts card sold on January 2 have been redeemed

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