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Required Information The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Credit Dobit $ 26, see 49.oe Accounts Receivable Allowance for Uncollectible Accounts Inventory $ 5,600 21, 480 be, ese 22.000 Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2822) Common Stock Retained Earnings Totals 2,980 29,90 64, Bee 49, ese 178,920 $178,920 During January 2021, the following transactions occur January 2 Sold gift cards totaling $10,800. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $161, e. January 15 Firework sales for the first half of the month total $149,eee. All of these sales are on account. The cost of the units sold is $80, 82e. January 23 Receive $126,800 from customers on accounts receivable. January 25 Pay $184.ee to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,2ee. January 30 Firework sales for the second half of the month total $157,000. Sales include $15,eee for cash and $142,000 on account. The cost of the units sold is $86,5ee. January 31 Pay cash for monthly salaries, $53,400. - 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 $4,600 and a two-year service life. - The company estimates future uncollectible accounts. The company determines $25.000 of accounts receivable on January 31 are post 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.) - Accrued interest expense on notes payable for January - Accrued income taxes at the end of January are $14.400. - By the end of January, $4,400 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 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 $4,600 and a two-year service life. Record the depreciation for the month of January Note: Enter debits before credits General Journal Debit Credit Date January 31 Record entry Clear entry View general Journal

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