### Accrued Income Taxes Journal Entry**Scenario:**Accrued income taxes at the end of January are $13,000. Record the adjustment for income taxes.**Instructions:**- Note: Enter debits before credits.**General Journal Entry Table:**- **Date:** January 31- **General Journal:** [Blank fields provided]- **Debit:** [Blank fields provided]- **Credit:** [Blank fields provided]**Buttons:**- **Record entry**- **Clear entry**- **View general journal**### Explanation:In this exercise, you are required to record a journal entry for accrued income taxes. This involves entering a debit and credit in the respective fields for the amount of $13,000, reflecting the adjustment for income taxes as of January 31. Remember to input debit amounts before credits as per standard accounting practices. Use the buttons to submit your entry or view the general journal for previous records. **On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:****Accounts:**- Cash: Debit $23,800- Accounts Receivable: Debit $40,000- Allowance for Uncollectible Accounts: Credit $8,400- Inventory: Debit $37,800- Notes Payable: Credit $12,500- Accounts Payable: Credit $28,800- Bonds Payable (6%, due in 3 years): Credit $40,000- Common Stock: Credit $8,000- Retained Earnings: Credit $35,800Total: Debit $172,400, Credit $172,400---The $37,800 beginning balance of inventory consists of 378 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions:1. **January 3**: Purchased 1,680 units for $168,000 on account ($100 each).2. **January 8**: Purchased 1,700 units for $187,000 on account ($110 each).3. **January 12**: Purchased 1,450 units for $188,500 on account ($130 each).4. **January 15**: Sold 4,400 units on account for $688,000 ($156 each), defects of 50 units returned.5. **January 18**: Sold 1,250 units on account for $200,000 ($160 each). Cost of units sold is determined using a FIFO perpetual inventory system. Gross profit of $375,780.- January 22: Received $670,000 from customers on accounts receivable.- January 24: Paid $407,000 to suppliers on accounts payable.- January 26: Wrote off accounts receivable as uncollectible, $3,500.- January 31: Paid cash for salaries during January, $112,800.**The following information is available on January 31, 2021:**a. At the end of January, the company estimates that the remaining 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 receivable on January 31 are past due, and 35% of these accounts are estimated to be uncollectible.

No. Date General Journal Debit Credit 3 January 31, Interest Expense ($37,000 * 6% * 1…

On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit $ 23,300 48, 20e Cash Accounts Receivable Allowance for Uncollectible Accounts $ 4, 5ee Inventory Land 37,200 72,10e Accounts Payable Notes Payable (6t, due in 3 years) 28,900 37,eee 63,000 39,8ee Comnon Stock Retained Earnings Totals $172, 400 $172,400 The $37,000 beginning balance of inventory consists of 370 units, esch costing S100. During January 2021, Big Blest Fireworks had the following inventory transactions: January 3 Purchase 1,6ee units for $168,80e on account ($1es each). January 8 Purchase 1,70e units for $187,08e on account (S118 cach). January 12 Purchase 1,88e units for Sz07,eee on account ($115 each). January 15 Return 135 of the units purchased on 3anuary 12 because of defects. January 19 Sell 5,200 units on account for $780,020. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753,eee from customers on accounts receivable. January 24 Pay $52e, 8ee to inventory suppliers on accounts payable. January 27 Mrite off accounts receivable as uncollectible, $3,200. January 31 Pay cash for salaries during January, $121,80e. The following information is available on January 31, 2021. . At the end of January, the compeny estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncolliectible sccounts. The company determines $4700 of accounts receivable on January 31 are pest due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint Use the January 31 accounts receivable balance calculated in the general ledger.) c Accrued interest expense on notes payable for January. Interest is expected to be paid esch December 31. d. Accrued income taxes at the end of January are $13,000. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 eoch. b. The company estimates future uncollectible accounts. The company determines $4,700 of sccounts receiveble on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these sccounts are estimsted to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the generel ledger) C Accrued interest expense on notes psyeble for January. Interest is expected to be paid esch December 31. d. Accrued income taxes et the end of January are $13.00. 2 Record sojusting entries on January 31 for the above transactions. (f no entry is required for a transaction/event, select "No ournal entry required" In the first account field.) Vew transacton lst Journal entry worksheet < 1 2 > Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. Record the adjustment for interest expense. Note: Enter debits before crecits Date General Jourmal Debit Credit January 31