Exercise 7-21 Complete the accounting cycle using long-term asset transactions (LO7-4,7-7) (The following information applies to the questions displayed below] On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Cash Accounts Receivable. Allowance for Uncollectible Debit $ 59,500 Credit 26,600 $ 3,000 Accounts Inventory 37,100 Notes Receivable (5%, due in 21,600 2 years) Land 163,000 Accounts Payable 15,600 Common Stock 228,000 Retained Earnings 61,200 Totals $307,800 $307,880 During January 2021, the following transactions occur January 1 Purchase equipment for $20,300. The company estimates a residual value of $2,300 and a five-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 cash for January utilities, $17,300. January 30 Sales for January total $228, eee. All of these sales are on account. The cost of the units sold is $119,000. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method b. The company estimates future uncollectible accounts. The company determines $3,800 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33,400 e. Accrued income taxes at the end of January are $9,800 Exercise 7-21 Part 6 5. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 31 2021 Sales Revenue 228,000 Interest Revenue 90 Retained Eamings 2 January 311 2021 Retained Earnings Cost of Goods Sold Salaries Expense Utilities Expense Depreciation Expense Bad Debt Expense Income Tax Expense