ecord purchase of 1,700 units for $187,000 on account ($110 each). : Enter debits before credits. Date General Journal Debit Credit muary 08
ecord purchase of 1,700 units for $187,000 on account ($110 each). : Enter debits before credits. Date General Journal Debit Credit muary 08
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Record purchase of 1,700 units for $187,000 on account ($110 each).
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 08
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe47b30a2-4e58-4feb-9780-f9c4efb2bbca%2F7f2561f5-4bb8-4086-9635-1d5cb764af40%2Fvca1e7e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Record purchase of 1,700 units for $187,000 on account ($110 each).
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 08
Record entry
Clear entry
View general journal
![On January 1, 2021, the general ledger of Big Blast Fireworks Includes the following account balances:
Accounts
Debit
Credit
Cash
$ 23, 300
Accounts Receivable
Allowance for Uncollectible Accounts
40, 000
$ 4,500
Inventory
37, 000
72,108
Land
Accounts Payable
Notes Payable (6%, due in 3 years)
28,900
37,e00
Common Stock
63,000
Retained Earnings
39,e00
Totals
$172,480 $172,400
The $37,000 beginning balance of Inventory consists of 370 units, each costing $100. During January 2021. Big Blast
Fireworks had the following Inventory transactions:
January 3 Purchase 1,680 units for $168,8ee on account ($185 each).
January 8 Purchase 1,700 units for $187,0ee on account ($11e each).
January 12 Purchase 1,800 units for $207,0ee on account ($115 each).
January 15 Return 135 of the units purchased on January 12 because of defects.
January 19 Sell 5,200 units on account for $788,00e. The cost of the units sold is deternined using a FIF0 perpetual
inventory system.
January 22 Receive $753,80e from custoners on accounts receivable.
January 24 Pay $528,888 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $3,288.
January 31 Pay cash for salaries during January, $121,800.
The following Information is available on January 31, 2021.
a. At the end of January. the company estimates that the remalning units of inventory are expected to sell in February for
only $100 each.
b. The company estimates future uncollectible accounts. The company determines $4,700 of accounts recelvabie on
January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts
recelvable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the
January 31 accounts recelvable balance calculated in the general ledger.)
C. Accrued Interest expense on notes payable for January. Interest Is expected to be pald each December 31.
d. Accrued income taxes at the end of January are $13,000.
Required:
1. Record each of the transactions listed above, assuming a FIFO perpetual Inventory system. (If no entry is required for a
transaction/event, select "No Journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
5 6 7 8 9
1
3
4
10
Record purchase of 1,600 units for $168,000 on account ($105 each).
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 03](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe47b30a2-4e58-4feb-9780-f9c4efb2bbca%2F7f2561f5-4bb8-4086-9635-1d5cb764af40%2Fon5moig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, the general ledger of Big Blast Fireworks Includes the following account balances:
Accounts
Debit
Credit
Cash
$ 23, 300
Accounts Receivable
Allowance for Uncollectible Accounts
40, 000
$ 4,500
Inventory
37, 000
72,108
Land
Accounts Payable
Notes Payable (6%, due in 3 years)
28,900
37,e00
Common Stock
63,000
Retained Earnings
39,e00
Totals
$172,480 $172,400
The $37,000 beginning balance of Inventory consists of 370 units, each costing $100. During January 2021. Big Blast
Fireworks had the following Inventory transactions:
January 3 Purchase 1,680 units for $168,8ee on account ($185 each).
January 8 Purchase 1,700 units for $187,0ee on account ($11e each).
January 12 Purchase 1,800 units for $207,0ee on account ($115 each).
January 15 Return 135 of the units purchased on January 12 because of defects.
January 19 Sell 5,200 units on account for $788,00e. The cost of the units sold is deternined using a FIF0 perpetual
inventory system.
January 22 Receive $753,80e from custoners on accounts receivable.
January 24 Pay $528,888 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $3,288.
January 31 Pay cash for salaries during January, $121,800.
The following Information is available on January 31, 2021.
a. At the end of January. the company estimates that the remalning units of inventory are expected to sell in February for
only $100 each.
b. The company estimates future uncollectible accounts. The company determines $4,700 of accounts recelvabie on
January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts
recelvable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the
January 31 accounts recelvable balance calculated in the general ledger.)
C. Accrued Interest expense on notes payable for January. Interest Is expected to be pald each December 31.
d. Accrued income taxes at the end of January are $13,000.
Required:
1. Record each of the transactions listed above, assuming a FIFO perpetual Inventory system. (If no entry is required for a
transaction/event, select "No Journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
5 6 7 8 9
1
3
4
10
Record purchase of 1,600 units for $168,000 on account ($105 each).
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 03
Expert Solution
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Step 1 Introduction
The journal entries are prepared to keep the record of day to day transactions of the business.
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