# On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances: The \$30,000 beginning balance

## Question:

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

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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Related Book For

## Financial Accounting

ISBN: 978-1259307959

4th edition

Authors: David Spiceland, Wayne Thomas, Don Herrmann

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