On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:**Account Balances:**- **Cash**: $23,280- **Accounts Receivable**: $46,000- **Allowance for Uncollectible Accounts**: $4,500- **Inventory**: $37,000- **Land**: $72,000- **Accounts Payable**: $28,900- **Notes Payable (6%, due in 3 years)**: $41,000- **Common Stock**: $63,000- **Retained Earnings**: $41,880Total Debits and Credits both equal $178,280.---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:**Inventory Transactions:**- **January 3**: Purchase 1,600 units for $168,000 on account ($105 each).- **January 8**: Purchase 1,700 units for $187,000 on account ($110 each).- **January 12**: Purchase 1,800 units for $207,000 on account ($115 each).- **January 22**: Return of 180 defective units from the January 12 purchase.- **January 31**: Sale of 4,700 units on account for $610,000 ($130 each). Note: The company uses a FIFO (First-In, First-Out) perpetual inventory system, where each sale's cost is determined using this method.**Additional Information:**- 20 units sold on January 31 were returned due to defects.- At the end of January, the company has 170 units on hand.- Accounts receivable collected during January amount to $531,000.- Accounts payable balance paid in January is $190,000.---The following information is available on January 31, 2021:**Adjustments Needed:**a. Remaining inventory units expected to sell for only $100 each.b. Estimation of uncollectible accounts with $4,700 over 31 days past due and 35% uncollectible; the remaining accounts receivable are expected to be 5% uncollectible.c. Accrued interest of $205 on notes payable.d. **Instructions for Journal Entry:**Record the return of the 135 units purchased on January 12 due to defects. **Important Note:** Enter debits before credits. **Journal Entry Table:**1. **Date:** January 152. **Columns:** - General Journal - Debit - Credit**Table Layout:**- The table is structured with rows under the date "January 15" for entering the transaction details.- Each row is divided into three columns: General Journal, Debit, and Credit.**Action Buttons:**- **Record entry:** To enter the transaction in the journal.- **Clear entry:** To erase any inputted data in the table.- **View general journal:** To review all recorded entries.This format helps in maintaining accurate financial records by clearly detailing each aspect of the journal entry related to returned units.

Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash S 23, 300 Accounts Receivable Allowance for Uncollectible Accounts Inventory 48, e0e $ 4, 580 37, 80e Land 72,108 Accounts Payable Notes Payable (6%, due in 3 years) Common Stock Retained Earnings 28, 98e 37,0ee 63, 000 39,eee Totals $172,400 $172,400 The $37,000 beginning balance of inventory consists of 370 units, each costing $100. During Janusry 2021, Big Blest Fireworks had the following inventory transections: January 3 Purchase 1,62e units for $168,80e on account ($1es cach)- January 8 Purchase 1,78e units for $187, 800 on account ($118 cach). January 12 Purchase 1,s2e units for $287, e00 on account ($115 cach). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on aco unt for $78e, ee0. he cost of the unit sold is deternined using a FIFO perpetual inventory system. January 22 Receive $753, eee from custoners on accounts receivable. January 24 Pay $520,8ee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3,200. January 31 Pay cash for salaries during January, $121,e0e. 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 sccounts. The company determines $4,700 of accounts receivable on January 31 are pst 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 estimsted to be uncollectible. (Hint: Use the January 31 accounts receiveble balance calculated in the general ledger.) C. Accrued interest expense on notes payable for Januory. Interest is expected to be paid esch December 31. d. Accrued income taxes ot the end of January are $13,000. equired: Record esch of the transactions listed above, assuming a FIFO perpetuel inventory system. (If no entry Is required for a ansaction/event, select "No journal entry required" In the first account field.) View transaction ilat Journal entry worksheet < 1 2 3 5 6 7 8 9 10 4 Record purchase of 1,800 units for $207,000 on account ($115 each). Note: Enter debits before crecits. Date General Journal Debit Credit January 12 Record entry Clear entry Vlew general journal