On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances: The

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On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances:
On January 1, 2018, the general ledger of Big Blast

The $30,000 beginning balance of inventory consists of 300 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions:
January 3 Purchase 1,200 units for $126,000 on account ($105 each).
January 8 Purchase 1,300 units for $143,000 on account ($110 each).
January 12 Purchase 1,400 units for $161,000 on account ($115 each).
January 15 Return 100 of the units purchased on January 12 because of defects.
January 19 Sell 4,000 units on account for $600,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22 Receive $580,000 from customers on accounts receivable.
January 24 Pay $410,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,500.
January 31 Pay cash for salaries during January, $128,000.

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Financial Accounting

ISBN: 978-1259307959

4th edition

Authors: David Spiceland, Wayne Thomas, Don Herrmann

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