“On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,700 Accounts Receivable 47,400 Allowance for Uncollectible Accounts $ 4,800 Inventory 20,600 Land 52,000 Equipment 18,000 Accumulated Depreciation 2,100 Accounts Payable 29,100 Notes Payable (6%, due April 1, 2022) 56,000 Common Stock 41,000 Retained Earnings 30,700 Totals $ 163,700 $ 163,700 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $9,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $153,000. January 15 Firework sales for the first half of the month total $141,000. All of these sales are on account. The cost of the units sold is $76,800. January 23 Receive $126,000 from customers on accounts receivable. January 25 Pay $96,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,400. January 30 Firework sales for the second half of the month total $149,000. Sales include $13,000 for cash and $136,000 on account. The cost of the units sold is $82,500. January 31 Pay cash for monthly salaries, $52,600. The following information is available on January 31. 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 $3,600 and a two-year service life. At the end of January, $17,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. Accrued interest expense on notes payable for January. Accrued income taxes at the end of January are $13,600. By the end of January, $3,600 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). No Date Account Title Debit Credit 1 Jan 02 Cash Deferred Revenue 2 Jan 06 Inventory Accounts Payable 3 Jan 15 Accounts Receivable Sales Revenue 4 Jan 15 Cost of Goods Sold Inventory 5 Jan 23 Cash Accounts Receivable 6 Jan 25 Accounts Payable Cash 7 Jan 28 Allowance for Uncollectible Accounts Accounts Receivable 8 Jan 30 Accounts Receivable Cash 9 Jan 30 Cost of Goods Sold Inventory 10 Jan 31 Salaries Expense 52,600 Cash 52,600 11 Jan 31 Depreciation Expense 600 Accumulated Depreciation 600 12 Jan 31 Bad Debt Expense Allowance for Uncollectible Accounts 13 Jan 31 Interest Expense 280 Interest Payable 280 14 Jan 31 Income Tax Expense 13,600 13,600 15 Jan 31 Deferred Revenue Sales Revenue 16 Jan 31 Sales Revenue Retained Earnings 17 Jan 31 Retained Earnings Cost of Goods Sold Salaries Expense Bad Debt Expense Depreciation Expense Interest Expense Income Tax Expense”

“ “On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,700 Accounts Receivable 47,400 Allowance for Uncollectible Accounts $ 4,800 Inventory 20,600 Land 52,000 Equipment 18,000 Accumulated Depreciation 2,100 Accounts Payable 29,100 Notes Payable (6%, due April 1, 2022) 56,000 Common Stock 41,000 Retained Earnings 30,700 Totals $ 163,700 $ 163,700 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $9,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $153,000. January 15 Firework sales for the first half of the month total $141,000. All of these sales are on account. The cost of the units sold is $76,800. January 23 Receive $126,000 from customers on accounts receivable. January 25 Pay $96,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,400. January 30 Firework sales for the second half of the month total $149,000. Sales include $13,000 for cash and $136,000 on account. The cost of the units sold is $82,500. January 31 Pay cash for monthly salaries, $52,600. The following information is available on January 31. 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 $3,600 and a two-year service life. At the end of January, $17,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. Accrued interest expense on notes payable for January. Accrued income taxes at the end of January are $13,600. By the end of January, $3,600 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). No Date Account Title Debit Credit 1 Jan 02 Cash Deferred Revenue 2 Jan 06 Inventory Accounts Payable 3 Jan 15 Accounts Receivable Sales Revenue 4 Jan 15 Cost of Goods Sold Inventory 5 Jan 23 Cash Accounts Receivable 6 Jan 25 Accounts Payable Cash 7 Jan 28 Allowance for Uncollectible Accounts Accounts Receivable 8 Jan 30 Accounts Receivable Cash 9 Jan 30 Cost of Goods Sold Inventory 10 Jan 31 Salaries Expense 52,600 Cash 52,600 11 Jan 31 Depreciation Expense 600 Accumulated Depreciation 600 12 Jan 31 Bad Debt Expense Allowance for Uncollectible Accounts 13 Jan 31 Interest Expense 280 Interest Payable 280 14 Jan 31 Income Tax Expense 13,600 13,600 15 Jan 31 Deferred Revenue Sales Revenue 16 Jan 31 Sales Revenue Retained Earnings 17 Jan 31 Retained Earnings Cost of Goods Sold Salaries Expense Bad Debt Expense Depreciation Expense Interest Expense Income Tax Expense” ”

“ “On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,700 Accounts Receivable 47,400 Allowance for Uncollectible Accounts $ 4,800 Inventory 20,600 Land 52,000 Equipment 18,000 Accumulated Depreciation 2,100 Accounts Payable 29,100 Notes Payable (6%, due April 1, 2022) 56,000 Common Stock 41,000 Retained Earnings 30,700 Totals $ 163,700 $ 163,700 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $9,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $153,000. January 15 Firework sales for the first half of the month total $141,000. All of these sales are on account. The cost of the units sold is $76,800. January 23 Receive $126,000 from customers on accounts receivable. January 25 Pay $96,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,400. January 30 Firework sales for the second half of the month total $149,000. Sales include $13,000 for cash and $136,000 on account. The cost of the units sold is $82,500. January 31 Pay cash for monthly salaries, $52,600. The following information is available on January 31. 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 $3,600 and a two-year service life. At the end of January, $17,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. Accrued interest expense on notes payable for January. Accrued income taxes at the end of January are $13,600. By the end of January, $3,600 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). No Date Account Title Debit Credit 1 Jan 02 Cash Deferred Revenue 2 Jan 06 Inventory Accounts Payable 3 Jan 15 Accounts Receivable Sales Revenue 4 Jan 15 Cost of Goods Sold Inventory 5 Jan 23 Cash Accounts Receivable 6 Jan 25 Accounts Payable Cash 7 Jan 28 Allowance for Uncollectible Accounts Accounts Receivable 8 Jan 30 Accounts Receivable Cash 9 Jan 30 Cost of Goods Sold Inventory 10 Jan 31 Salaries Expense 52,600 Cash 52,600 11 Jan 31 Depreciation Expense 600 Accumulated Depreciation 600 12 Jan 31 Bad Debt Expense Allowance for Uncollectible Accounts 13 Jan 31 Interest Expense 280 Interest Payable 280 14 Jan 31 Income Tax Expense 13,600 13,600 15 Jan 31 Deferred Revenue Sales Revenue 16 Jan 31 Sales Revenue Retained Earnings 17 Jan 31 Retained Earnings Cost of Goods Sold Salaries Expense Bad Debt Expense Depreciation Expense Interest Expense Income Tax Expense” ”