The general ledger of Pop’s Fireworks includes the following account balances in 2021:

In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above:

1. Provide additional services on account for $7,000. All services on account include terms 2/10, n/30.

2. Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $5,000.

3. Write off customer accounts of $1,500 as uncollectible.

Required:

1. Record each of the transactions listed above.

2. Record the following adjusting entries on December 31.

a. Estimate that 10% of the balance of accounts receivable (after transactions in requirement 1) will not be collected.

b. Accrue interest on the note receivable of $10,000, which was accepted on October 1, 2021. Interest is due each September 30.

3. Prepare an adjusted trial balance as of December 31, 2021, after updating account balances for transactions during the year (requirement 1) and adjusting entries at the end of the year (requirement 2).

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Accounts Debit Credit Cash $ 21,200 Accounts Receivable 41,500 Allowance for Uncollectible Accounts $ 2,200 Supplies Notes Receivable (8%, due in 2 years) 6,700 10,000 Land 85,000 Accounts Payable 12,300 Common Stock 106,000 Retained Earnings 29,900 Service Revenue 124,800 Salaries Expense Utilities Expense 70,900 24,200 Supplies Expense 15,700 Totals $275,200 $275,200