On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 26,200 48, 400 $ 5,300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 21,100 57,000 20,500 2,600 29,600 61,000 46,000 28,700 $173,200 $173,200 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $10,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $158,000. January 15 Firework sales for the first half of the month total $146,000. All of these sales are on account. The cost of the units sold is $79,300. January 23 Receive $126,500 from customers on accounts receivable. January 25 Pay $101,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,900. January 30 Firework sales for the second half of the month total $154,000. Sales include $17,000 for cash and $137,000 on account. The cost of the units sold is $85,000. January 31 Pay cash for monthly salaries, $53,100. The following information is available on January 31. a. 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 $4,300 and a two-year service life. b. The company estimates future uncollectible accounts. The company determines $22,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest expense on notes payable for January. d. Accrued income taxes at the end of January are $14,100. e. By the end of January, $4,100 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). Journal entry worksheet 2 3 4 5 6 7 8 ....... 17 Record sale of gift cards totaling $10,200. The cards are redeemable for merchandise within one year of the purchase date. Note: Enter debits before credits. Date Account Title Debit Credit Jan 02 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 8 ..... 17 Record purchase of additional inventory on account, $158,000. Note: Enter debits before credits. Date Account Title Debit Credit Jan 06 Record entry Clear entry View general journal Journal entry worksheet Record the cost of the units sold is $79,300. Note: Enter debits before credits. Date Account Title Debit Credit Jan 15 Record entry Clear entry View general journal Journal entry worksheet Record receipt of $126,500 from customers on accounts receivable. Note: Enter debits before credits. Date Account Title Debit Credit Jan 23 Record entry Clear entry View general journal Journal entry worksheet Record fireworks sales for the second half of the month totaling $154,000. Sales include $17,000 for cash and $137,000 on account. Note: Enter debits before credits. Date Account Title Debit Credit Jan 30 Record entry Clear entry View general journal Journal entry worksheet Record the cost of the units sold of $85,000. Note: Enter debits before credits. Date Account Title Debit Credit Jan 30 Record entry Clear entry View general journal Journal entry worksheet Record payment of cash for monthly salaries, $53,100. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet Accrued income taxes at the end of January are $14,100. Prepare the adjusting entry for income tax. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet By the end of January, $4,100 of the gift cards sold on January 2 have been redeemed. Prepare the adjusting entry for gift cards redeemed. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet 1 ... 10 11 12 13 14 15 16 17 Prepare the closing entry for revenue. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet