On January 1, 2021, the general ledger of Big Blast Fireworksincludes the following account balances:
| Accounts | Debit | | Credit | |
| Cash | $ | 22,900 | | | | |
| Accounts Receivable | | 39,000 | | | | |
| Allowance for Uncollectible Accounts | | | | $ | 4,100 | |
| Inventory | | 35,000 | | | | |
| Land | | 69,100 | | | | |
| Accounts Payable | | | | | 29,900 | |
| Notes Payable (12%, due in 3 years) | | | | | 35,000 | |
| Common Stock | | | | | 61,000 | |
| Retained Earnings | | | | | 36,000 | |
| Totals | $ | 166,000 | | $ | 166,000 | |
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The $35,000 beginning balance of inventory consists of 350units, each costing $100. During January 2021, Big Blast Fireworkshad the following inventory transactions:
| January | | 3 | | Purchase 1,400 units for $154,000 on account ($110 each). |
| January | | 8 | | Purchase 1,500 units for $172,500 on account ($115 each). |
| January | | 12 | | Purchase 1,600 units for $192,000 on account ($120 each). |
| January | | 15 | | Return 125 of the units purchased on January 12 because ofdefects. |
| January | | 19 | | Sell 4,600 units on account for $690,000. The cost of the unitssold is determined using a FIFO perpetual inventory system. |
| January | | 22 | | Receive $665,000 from customers on accounts receivable. |
| January | | 24 | | Pay $495,000 to inventory suppliers on accounts payable. |
| January | | 27 | | Write off accounts receivable as uncollectible, $3,000. |
| January | | 31 | | Pay cash for salaries during January, $119,000. |
The following information is available on January 31, 2021.
- At the end of January, the company estimates that the remainingunits of inventory are expected to sell in February for only $100each.
- The company estimates future uncollectible accounts. Thecompany determines $4,500 of accounts receivable on January 31 arepast due, and 40% of these accounts are estimated to beuncollectible. The remaining accounts receivable on January 31 arenot past due, and 4% of these accounts are estimated to beuncollectible. (Hint: Use the January 31 accounts receivablebalance calculated in the general ledger.)
- Accrued interest expense on notes payable for January. Interestis expected to be paid each December 31.
- Accrued income taxes at the end of January are $12,800.
I ONLY NEED HELP WITH A-D (all of the January 31st journalentries plus recording the closing entry for revenue andexpenses.
