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On January 1. 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Debit Credit S 21, 100 40,000 Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (Gx, due in years) $ 4, 500 37, 000 72,100 28, 00 17,000 63,000 19,000 $172,400 $172, 4eo Comnon Stock Retained larnings Totals The $37.000 beginning balance of inventory consists of 370 units, esch costing $100. During January 2021, Big Blas: Fireworks had the following inventory transactions: January Purchase 1,000 units for $168,000 on account ($10s each). January Purchase 1,700 units for si87,000 on account ($11e each). January 12 Purchase 1,800 units for $207,000 on account ($11s each). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on account for $780,000. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753, 000 fron customers on accounts receivable. January 24 Pay $520,000 to inventory suppliers on accounts payable. January 27 Mrite off accounts receivable as wuncellectible, s3,200. January 11 Pay cash for salaries during January, $121,000. The following informetion 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. 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 occounts receiveble 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.

On January 1. 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Debit Credit S 21, 100 40,000 Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (Gx, due in years) $ 4, 500 37, 000 72,100 28, 00 17,000 63,000 19,000 $172,400 $172, 4eo Comnon Stock Retained larnings Totals The $37.000 beginning balance of inventory consists of 370 units, esch costing $100. During January 2021, Big Blas: Fireworks had the following inventory transactions: January Purchase 1,000 units for $168,000 on account ($10s each). January Purchase 1,700 units for si87,000 on account ($11e each). January 12 Purchase 1,800 units for $207,000 on account ($11s each). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on account for $780,000. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753, 000 fron customers on accounts receivable. January 24 Pay $520,000 to inventory suppliers on accounts payable. January 27 Mrite off accounts receivable as wuncellectible, s3,200. January 11 Pay cash for salaries during January, $121,000. The following informetion 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. 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 occounts receiveble 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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash $ 23, 308 Accounts Receivable Allowance for Uncollectible Accounts 48, B00 $ 4, 580 Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) 37, e00 72,100 28,980 37,000 Comnon Stack Retained Earnings 63, eee 39,eee Totals $172,400 $172,400 The $37,000 beginning belance of inventory consists of 370 units, each costing S100. During Janusry 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,68e units for 168,088 on account ($10s cach). January 8 Purchase 1,78e units for $187, 880 on account ($110 cach). January 12 Purchase 1,88e units for $287,000 on account ($115 cach). January 15 Return 135 of the units purchased on 3anuary 12 because of defccts. January 19 Sell 5,2ee units on account for $788,8ee. 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 $520,eee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3, 288. January 31 Pay cash for salarics during January, $121,000. The following information is available on January 31, 2021. a. At the end of Jenuary, 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 compony determines $4,700 of accounts receivoble 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 accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receiveble balance colculsted 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 ore $13,000. 5. Record closing entries. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account Field.) View traneaction liet Journal entry worksheet 1 Record the closing entry for revenue accounts. Note: Enter debits befare credits. Date General Journal Deblt Credit Jariuary 31, 2021 Record entry Clear ontry Vew general Jourmal
Transcribed Image Text:On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash $ 23, 308 Accounts Receivable Allowance for Uncollectible Accounts 48, B00 $ 4, 580 Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) 37, e00 72,100 28,980 37,000 Comnon Stack Retained Earnings 63, eee 39,eee Totals $172,400 $172,400 The $37,000 beginning belance of inventory consists of 370 units, each costing S100. During Janusry 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,68e units for 168,088 on account ($10s cach). January 8 Purchase 1,78e units for $187, 880 on account ($110 cach). January 12 Purchase 1,88e units for $287,000 on account ($115 cach). January 15 Return 135 of the units purchased on 3anuary 12 because of defccts. January 19 Sell 5,2ee units on account for $788,8ee. 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 $520,eee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3, 288. January 31 Pay cash for salarics during January, $121,000. The following information is available on January 31, 2021. a. At the end of Jenuary, 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 compony determines $4,700 of accounts receivoble 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 accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receiveble balance colculsted 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 ore $13,000. 5. Record closing entries. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account Field.) View traneaction liet Journal entry worksheet 1 Record the closing entry for revenue accounts. Note: Enter debits befare credits. Date General Journal Deblt Credit Jariuary 31, 2021 Record entry Clear ontry Vew general Jourmal
On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash $ 23, 308 Accounts Receivable Allowance for Uncollectible Accounts 48, B00 $ 4, 580 Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) 37, e00 72,100 28,980 37,000 Comnon Stack Retained Earnings 63, eee 39,eee Totals $172,400 $172,400 The $37,000 beginning belance of inventory consists of 370 units, each costing S100. During Janusry 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,68e units for 168,088 on account ($10s cach). January 8 Purchase 1,78e units for $187, 880 on account ($110 cach). January 12 Purchase 1,88e units for $287,000 on account ($115 cach). January 15 Return 135 of the units purchased on 3anuary 12 because of defccts. January 19 Sell 5,2ee units on account for $788,8ee. 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 $520,eee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3, 288. January 31 Pay cash for salarics during January, $121,000. The following information is available on January 31, 2021. a. At the end of Jenuary, 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 compony determines $4,700 of accounts receivoble 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 accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receiveble balance colculsted 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 ore $13,000. 5. Record closing entries. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account Field.) View traneaction liet Journal entry worksheet 1 Record the closing entry for revenue accounts. Note: Enter debits befare credits. Date General Journal Deblt Credit Jariuary 31, 2021 Record entry Clear ontry Vew general Jourmal
Transcribed Image Text:On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash $ 23, 308 Accounts Receivable Allowance for Uncollectible Accounts 48, B00 $ 4, 580 Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) 37, e00 72,100 28,980 37,000 Comnon Stack Retained Earnings 63, eee 39,eee Totals $172,400 $172,400 The $37,000 beginning belance of inventory consists of 370 units, each costing S100. During Janusry 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,68e units for 168,088 on account ($10s cach). January 8 Purchase 1,78e units for $187, 880 on account ($110 cach). January 12 Purchase 1,88e units for $287,000 on account ($115 cach). January 15 Return 135 of the units purchased on 3anuary 12 because of defccts. January 19 Sell 5,2ee units on account for $788,8ee. 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 $520,eee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3, 288. January 31 Pay cash for salarics during January, $121,000. The following information is available on January 31, 2021. a. At the end of Jenuary, 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 compony determines $4,700 of accounts receivoble 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 accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receiveble balance colculsted 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 ore $13,000. 5. Record closing entries. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account Field.) View traneaction liet Journal entry worksheet 1 Record the closing entry for revenue accounts. Note: Enter debits befare credits. Date General Journal Deblt Credit Jariuary 31, 2021 Record entry Clear ontry Vew general Jourmal
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