On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:...

   

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On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit $ 22,900 39,000 Canh AccountS Receivable Allowance for Uncollectible Accounts Inventory 4,100 35,000 69,100 Land Accounts Payable Notes Payable (128, due in 3 years) Common Stock Retained Earnings 29,900 35,0০০ 61,000 36,000 $166,000 $166,000 Totals The $35,000 beginning balance of inventory consists of 350 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: 3 Purchase 1,400 units for $154,000 on account (S110 each). 8 Purchane 1,500 units for $172,500 or account (S115 each). January January January 12 Purehase 1,600 units for $192,000 on account ($120 each). January 15 Return 125 of the units purchaned on January 12 because of defectn. January 19 Sell 4,600 units on account for $690,0o. The cost of the unita old is determined using a FIFO perpetual inventory ayatem. January 22 Receive $665,000 from eustomers on accounta receivable. January 24 Pay $495, 000 t o inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,000. January 31 Pay cash for salaries during January, $119,000. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $4,500 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) C. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $12,800. Exercise 6-21 Part 1 Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 7 8. 9. 10 Record purchase of 1,400 units for $154,000 on account ($110 each). Note: Enter debits before credits. Date General Journal Debit Credit January 03 Record entry Clear entry View general journal On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit $ 22,900 39,000 Canh AccountS Receivable Allowance for Uncollectible Accounts Inventory 4,100 35,000 69,100 Land Accounts Payable Notes Payable (128, due in 3 years) Common Stock Retained Earnings 29,900 35,0০০ 61,000 36,000 $166,000 $166,000 Totals The $35,000 beginning balance of inventory consists of 350 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: 3 Purchase 1,400 units for $154,000 on account (S110 each). 8 Purchane 1,500 units for $172,500 or account (S115 each). January January January 12 Purehase 1,600 units for $192,000 on account ($120 each). January 15 Return 125 of the units purchaned on January 12 because of defectn. January 19 Sell 4,600 units on account for $690,0o. The cost of the unita old is determined using a FIFO perpetual inventory ayatem. January 22 Receive $665,000 from eustomers on accounta receivable. January 24 Pay $495, 000 t o inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,000. January 31 Pay cash for salaries during January, $119,000. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $4,500 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) C. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $12,800. Exercise 6-21 Part 1 Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 7 8. 9. 10 Record purchase of 1,400 units for $154,000 on account ($110 each). Note: Enter debits before credits. Date General Journal Debit Credit January 03 Record entry Clear entry View general journal