Exercise $8-19($Algo$)$ Complete the accounting cycle $($L$08-1,8-2,8-4,8-6)$

$[$The following information applies to the questions displayed below.$]$

On January $1,2024,$ the general ledger of ACME Fireworks includes the following account balances:

During January $2024,$ the following transactions occur:

January $2$ Sold gift cards totaling $$9,800.$ The cards are redeemable for merchandise within one year of the

purchase date.

January $6$ Purchase additional inventory on account, $$156,000.$ ACME uses the perpetual inventory system.

January $15$ Firework sales for the first half of the month total $$144,000.$ All of these sales are on account.

The cost of the units sold is $$78,300.$

January $23$ Receive $$126,300$ from customers on accounts receivable.

January $25$ Pay $$99,000$ to inventory suppliers on accounts payable.

January $28$ Write off accounts receivable as uncollectible, $$5,700.$

January $30$ Firework sales for the second half of the month total $$152,000.$ Sales include $$12,000$ for cash

and $$140,000$ on account. The cost of the units sold is $$84,000.$

January $31$ Pay cash for monthly salaries, $$52,900.$

:xercise $8-19($Algo$)$ Part $2$

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

was purchased, the company estimated a residual value of $$3,900$ and a two$-$year service life.

The company records an adjusting entry for $$12,000$ for estimated future uncollectible accounts.

The company has accrued interest on notes payable for January.

The company has accrued income taxes at the end of January of $$13,900.$

By the end of January, $$3,900$ of the gift cards sold on January $2$ have been redeemed $($ignore cost of goods sold$).$