Month-end adjusting entries:Of the remaining accounts receivable, the company estimates that 10% will not be collected.Accrued interest revenue on notes receivable for January.Accrued interest expense on notes payable for January.Accrued income taxes at the end of January for $5,000.Depreciation on the building, $2,000.Please Fill out the following journal entrys:1. Of the remaining accounts receivable, the company estimates that 10% will not be collected. Record the adjusting entry for bad debts2. Record the closing entry for temporary credit accounts3. Record the closing entry for temporary debit accounts ### General Ledger of Tripley Company - January 1, 2021On January 1, 2021, the general ledger of Tripley Company included the following account balances:| Accounts | Debit | Credit ||---------------------------------|---------|-----------|| Cash | $70,000 | || Accounts receivable | 40,000 | || Allowance for uncollectible accounts | | $5,000 || Inventory | 30,000 | || Building | 70,000 | || Accumulated depreciation | | 10,000 || Land | 200,000 | || Accounts payable | | 20,000 || Notes payable (8%, due in 3 years) | | 36,000 || Common stock | | 100,000 || Retained earnings | | 239,000 || **Totals** | $410,000| $410,000 |### Beginning Inventory BalanceThe $30,000 beginning balance of inventory consists of 300 units, each costing $100.### January 2021 TransactionsDuring January 2021, the company had the following transactions:- **January 2:** Lent $20,000 to an employee by accepting a 6% note due in six months.- **January 5:** Purchased 3,500 units of inventory on account for $385,000 ($110 each) with terms 1/10, n/30.- **January 8:** Returned 100 defective units of inventory purchased on January 5.- **January 15:** Sold 3,300 units of inventory on account for $429,000 ($130 each) with terms 2/10, n/30.- **January 17:** Customers returned 200 units sold on January 15. These units were initially purchased by the company on January 5. The units are placed in inventory to be sold in the future.- **January 20:** Received cash from customers on accounts receivable. This amount includes $36,000 from 2020 plus the amount receivable on the sale of 2,700 units sold on January 15.- **January 21:** Wrote off remaining accounts receivable from 2020.- **January 24:** ### Financial Transactions Report for JanuaryBelow is a detailed list of financial transactions for the month of January. Each transaction is recorded with the corresponding date, a brief description, and the amounts involved.---**8. Date: January 20**- **Transaction Details:** - **Cash**: 379,980 - **Sales discounts**: 7,020 - **Accounts receivable**: 387,000All entries are verified and approved.---**9. Date: January 21**- **Transaction Details:** - **Allowance for uncollectible accounts**: 4,000 - **Accounts receivable**: 4,000All entries are verified and approved.---**10. Date: January 24**- **Transaction Details:** - **Accounts payable**: 361,000 - **Cash**: 361,000All entries are verified and approved.---**11. Date: January 28**- **Transaction Details:** - **Salaries expense**: 28,000 - **Cash**: 28,000All entries are verified and approved.---**12. Date: January 29**- **Transaction Details:** - **Utilities expense**: 10,000 - **Cash**: 10,000All entries are verified and approved.---**13. Date: January 30**- **Transaction Details:** - **Dividends**: 3,000 - **Cash**: 3,000All entries are verified and approved.---**14. Date: January 31**- **Transaction Details:** - **Bad debt expense**: 5,200 - **Allowance for uncollectible accounts**: 5,200These entries have not been verified and are marked accordingly.---**Summary of Anomalies:**- The transaction dated January 31 for "Bad debt expense" and "Allowance for uncollectible accounts" is marked with an error indicator and requires review.### Explanation of the Diagram:#### Transaction Comparison and Verification Indicator- **Green Checkmarks (✓):** These indicate that the respective entry has been reviewed and approved.- **Red Crosses (✗):** These symbolize that there is an issue with the respective transaction that needs further attention and verification.Regular audits are crucial

Journal entry refers to the recording made by the business in the books of accounts, of all the…

Answered: Month-end adjusting entries: Of the…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q