Exercise 7-37 (Algo) General Ledger Exercise [LO7-5, 7-6, 7-7, 7-9] On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit Cash $ 22,300 Accounts Receivable 11,600 Allowance for Uncollectible Accounts $ 1,500 Supplies 2,700 Notes Receivable (6%, due in 2 years) 21,600 Land 51,400 Accounts Payable 5,100 Common Stock 68,000 Retained Earnings 35,000 Totals $ 109,600 $ 109,600 During January 2024, the following transactions occur: 1. January 2 Provide services to customers for cash, $23,900. 2. January 6 Provide services to customers on account, $65,700. 3. January 15 Write off accounts receivable as uncollectible, $900. 4. January 20 Pay cash for salaries, $28,000. 5. January 22 Receive cash on accounts receivable, $62,400. 6. January 25 Pay cash on accounts payable, $3,950. 7. January 30 Pay cash for utilities during January, $10,100. The following information is available on January 31, 2024. At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 10% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% 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. Supplies at the end of January total $720. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. Unpaid salaries at the end of January are $24,100.

Question: At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 10% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% 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.