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	$ 21,900
Accounts Receivable	11,100
Allowance for Uncollectible Accounts		$ 1,400
Supplies	2,500
Notes Receivable (6%, due in 2 years)	20,000
Land	59,300
Accounts Payable		6,000
Common Stock		79,900
Retained Earnings		27,500
Totals	$ 114,800	$ 114,800

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, $54,200.
3. January 15	Write off accounts receivable as uncollectible, $800.
4. January 20	Pay cash for salaries, $24,900.
5. January 22	Receive cash on accounts receivable, $55,500.
6. January 25	Pay cash on accounts payable, $4,960.
7. January 30	Pay cash for utilities during January, $12,600.

The following information is available on January 31, 2024.

1. At the end of January, $4,500 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 $20,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
2. Supplies at the end of January total $780.
3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
4. Unpaid salaries at the end of January are $23,200.