70.2K

Verified Solution

Link Copied!

On January $1,2024,$ the general ledger of $3$D Family Fireworks includes the following account balances: $\backslash$table$[[\%,3,$January $15,$Allowance for uncollectible accounts,$1,000,],[,,,$Accounts receivable,,$1,000],[,4,$January $20,$Salaries expense,$31,100,],[,,$Cash,,$31,100],[\backslash$gamma $,5,$January $22,$Cash,$69,300,],[,,$Accounts receivable,,$69,300],[\backslash$gamma $,6,$January $25,$Accounts payable,$3,800,],[,,$Cash,,$3,800],[\backslash$gamma $,7,$January $30,$Utilities expense,$9,900,],[,,$Cash,,$9,900],[\backslash$rho $,8,$January $31,$Bad debt expense,$3,995,],[,,$Allowance for uncollectible accounts,,$3,945],[\backslash$gamma $,9,$January $31,$Supplies expense,$2,650,],[,,$Supplies,,$2,650],[2,10,$January $31,$Interest receivable,$136,],[,,$Interest revenue,,$136],[2,11,$January $31,$Salaries expense,$28,100,],[,,$Salaries payable,,$28,100],[2,12,$January $31,$Service revenue,,$],[,,$Interest revenue,,$],[,,$Retained earnings,,$],[2,13,$January $31,$Retained earnings,,$],[,,$Salaries expense,,$],[,,$Utilities expense,,$],[,,$Supplies expense,,$],[,,$Bad debt expense,,$]]$

Accounts Debit Credit

Cash $ $26,700$

Accounts Receivable $14,200$

Allowance for Uncollectible Accounts $ $1,900$

Supplies $3,400$

Notes Receivable $(6\%,$ due in $2$ years$)27,200$

Land $51,900$

Accounts Payable $5,200$

Common Stock $69,300$

Retained Earnings $47,000$

Totals $ $123,400$ $ $123,400$

During January $2024,$ the following transactions occur:

$1.$ January $2$ Provide services to customers for cash, $$28,200.$

$2.$ January $6$ Provide services to customers on account, $$68,100.$

$3.$ January $15$ Write off accounts receivable as uncollectible, $$1,000.$

$4.$ January $20$ Pay cash for salaries, $$31,100.$

$5.$ January $22$ Receive cash on accounts receivable, $$69,300.$

$6.$ January $25$ Pay cash on accounts payable, $$3,800.$

$7.$ January $30$ Pay cash for utilities during January, $$9,900.$

The following information is available on January $31,2024.$

At the end of January, $$3,600$ of accounts receivable are past due, and the company estimates that $20\%$ of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that $5\%$ will not be collected. The note receivable of $$27,200$ is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.

Supplies at the end of January total $$750.$

Accrued interest revenue on notes receivable for January. Interest is expected to be received each December $31.$

Unpaid salaries at the end of January are $$28,100.$

Answer & Explanation Solved by verified expert

See Answer