50.1K

Verified Solution

Link Copied!

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Debit Credit Accounts $ 24,300 Cash 13,800 Accounts Receivable Allowance for Uncollectible Accounts 1,200 Supplies Notes Receivable (6%, due in 2 years) 2,700 22,000 Land 77,200 Accounts Payable Common Stock 8,200 98,000 Retained Earnings 32,600 $140,000 $140,000 Totals During January 2021, the following transactions occur: 2 Provide services to customers for cash, $37,100 6 Provide services to customers on account, $74,400 January 15 Write off accounts receivable as uncollectible, $1,000 January January January 20 Pay cash for salaries, $31,600. January 22 Receive cash on accounts receivable, $72,000 January 25 Pay cash on accounts payable, $5,700. January 30 Pay cash for utilities during January, $13,900. The following information is available on January 31, 2021. a. The company estimates future uncollectible accounts. The company determines $5,200 of accounts receivable on January 31 are past due, and 20% 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 receivable balance calculated in the general ledger.) b. Supplies at the end of January total $80O. c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31 d. Unpaid salaries at the end of January are $33,700. Journal entry worksheet 2 3 6 7 8 13 1 4 5 20% 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 receivable balance calculated in the general ledger.) Record the adjusting entry for uncollectible accounts. Note: Enter debits before credits. Debit Date General Journal Credit Bad Debt Expense Jan 31, 2021 Allowance for Uncollectible Accounts Record entry Clear entry View general journal

Answer & Explanation Solved by verified expert

See Answer