Required information

Exercise $6-21($Algo$)$ Complete the accounting cycle using inventory transactions $($LO$6-2,6-3,6-5,6-6,6-$

On January $1,2024,$ the general ledger of Big Blast Fireworks includes the following account balances:

The $$49,000$ beginning balance of inventory consists of $490$ units, each costing $$100.$ During January $2024,$ Big Blast

Fireworks had the following inventory transactions:

January $3$ Purchase $1,750$ units for $$196,000$ on account $($ $$112$ each$).$

January $8$ Purchase $1,850$ units for $$216,450$ on account $($ $$117$ each$).$

January $12$ Purchase $1,950$ units for $$237,900$ on account $($ $$122$ each$).$

January $15$ Return $195$ of the units purchased on January $12$ because of defects.

January $19$ Sell $5,700$ units on account for $$855,000.$ The cost of the units sold is determined using a FIF$0$

perpetual inventory system.

January $22$ Receive $$837,000$ from customers on accounts receivable.

January $24$ Pay $$620,000$ to inventory suppliers on accounts payable.

January $27$ Write off accounts receivable as uncollectible, $$2,800.$

January $31$ Pay cash for salaries during January, $$138,000.$

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

a$.$ At the end of January, the company estimates that the remaining units of inventory purchased on January $12$ are

expected to sell in February for only $$100$ each. $[$Hint: Determine the number of units remaining from January $12$ after

subtracting the units returned on January $15$ and the units assumed sold $($FIFO$)$ on January $19.]$

b$.$ The company records an adjusting entry for $$3,530$ for estimated future uncollectible accounts.

c$.$ The company accrues interest on notes payable for January. Interest is expected to be paid each December $31.$

d$.$ The company accrues income taxes at the end of January of $$14,200.$

Assessment Tool iframe $g$ entries on January $31$ for the above transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No

Journal tntry kequired" in the first account field.$)$

Journal entry worksheet

At the end of January, the company estimates that the remaining units of

inventory purchased on January $12$ are expected to sell in February for only

$$100$ each. Record the adjusting entry for net realizable value.

Note: Enter debits before credits.