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On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 60,600 28,800 $ 4,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 38,200 34,800 174,000 16,700 239,000 76,600 $336, 400 $336, 400 During January 2021, the following transactions occur: January 1 Purchase equipment for $21,400. The company estimates a residual value of $3,400 and a five-year service life. January 4 Pay cash on accounts payable, $11,400. January 8 Purchase additional inventory on account, $101,900. January 15 Receive cash on accounts receivable, $23,900. January 19 Pay cash for salaries, $31,700. January 28 Pay cash for January utilities, $18,400. January 30 Sales for January total $239,000. All of these sales are on account. The cost of the units sold is $124,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $4,900 of accounts receivable on January 31 are past due, and 50% 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 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 revenue on notes receivable for January. d. Unpaid salaries at the end of January are $34,500. e. Accrued income taxes at the end of January are $10,900. 3. Prepare an adjusted trial balance as of January 31, 2021. TNT FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Credit

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