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Required information

Journal Entries $-$ Problem $7-6($Algo$)$ Comprehensive problem $($LO$7-1,7-4,7-7)$

On January $1,2026,$ the general ledger of TNT Fireworks includes the following account balances:

$\backslash$table$[[$Accounts$,$Debit,Credit$],[$Cash$,$$ $59,50$e$,],[$Accounts Receivable,$26,6e9,],[$Allowance for Uncollectible Accounts,,$$3,000],[$Inventory$,37,100,],[$Notes Receivable $(5$x$,$ due in $2$ years$),21,6$e$0,],[$Land$,163,00$e$,],[$Accounts Payable,,$15,6$ee$],[$Common Stock,,$228,00$e$],[$Retained Earnings,,$61,200],[$Totals$,$$ $307,800,$$ $307,80$e$]]$

During January $2026,$ the following transactions occur:

January $1$ Purchase equipment for $$20,300.$ The company estimates a residual value of $$2,300$ and a $5-$year service life.

January $4$ Pay cash on accounts payable, $$10,300.$

January $8$ Purchase additional inventory on account, $$90,900.$

January $15$ Receive cash on accounts receivable, $$22,800.$

January $19$ Pay cash for salaries, $$30,600.$

January $28$ Pay eash for January utilities, $$17,3e9.$

January $30$ Firework sales for January total $$228,609.$ All of these sales are on account. The cost of the units sold is $$119,$ e$90.$

Information for adjusting entries:

a$.$ Depreciation on the equipment for the month of January is calculated using the straight$-$line method.

b$.$ At the end of January, $$3,800$ of accounts recelvable are past due, and the company estimates that $50\%$ of these accounts will not be collected. Of the remaining accounts recelvable, the company estimates that $2\%$ will not be collected. The note receivable of $$21,600$ is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.

c$.$ Accrued interest revenue on notes receivable for January.

Record each of the transactions listed above.