$08$: HmWrk $($Part $02)-$ Connect

$08$: HmWrk $($Part $02)$

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On January $1,2024,$ the general ledger of ACME Fireworks includes the following account balances:

During January $2024,$ the following transactions occur:

January $2$ Sold gift cards totaling $$11,600.$ The cards are redeemable for merchandise within one year of the purchase date.

January $6$ Purchase additional inventory on account, $$165,000.$ ACME uses the perpetual inventory system.

January $15$ Firework sales for the first half of the month total $$153,000.$ All of these sales are on account. The cost of the units sold is $$82,800.$

January $23$ Receive $$127,200$ from customers on accounts receivable.

January $25$ Pay $$108,000$ to inventory suppliers on accounts payable.

January $28$ Write off accounts receivable as uncollectible, $$6,600.$

January $30$ Firework sales for the second half of the month total $$161,000.$ Sales include $$18,000$ for cash and $$143,000$ on account. The cost of the units sold is $$88,500.$

January $31$ Pay cash for monthly salaries, $$53,800.$

The following information is available on January $31.$

a$.$ Depreciation on the equipment for the month of January is calculated using the straight$-$line method. At the time the equipment was purchased, the company estimated a residual value of $$4,800$ and a two$-$year service life.

b$.$ The company records an adjusting entry for $$16,620$ for estimated future uncollectible accounts.

c$.$ The company has accrued interest on notes payable for January.

d$.$ The company has accrued income taxes at the end of January of $$14,800.$

e$.$ By the end of January, $$4,800$ of the gift cards sold on January $2$ have been redeemed $($ignore cost of goods sold$).$

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