Journal entry worksheet

$1$

On January $1,2024,$ the general ledger of Big Blast Fireworks included the following account balances:

AccountsDebitCreditCash$ $25,300$Accounts receivable$45,000$Allowance for uncollectible accounts$3,700$Inventory$47,000$Land$87,100$Accounts payable$26,700$Notes payable $(12\%,$ due in $3$ years$)47,000$Common stock$73,000$Retained earnings$54,000$Totals$ $204,400$$ $204,400$

The $$47,000$ beginning balance of inventory consists of $470$ units, each costing $$100.$ During January $2024,$ Big Blast Fireworks had the following inventory transactions:

January $3$Purchased $1,550$ units for $$170,500$ on account $($$$110$ each$).$January $8$Purchased $1,650$ units for $$189,750$ on account $($$$115$ each$).$January $12$Purchased $1,750$ units for $$210,000$ on account $($$$120$ each$).$January $15$Returned $185$ of the units purchased on January $12$ because of defects.January $19$Sold $5,100$ units on account for $$765,000.$ The cost of the units sold is determined using a FIFO perpetual inventory system.January $22$Received $$749,000$ from customers on accounts receivable.January $24$Paid $$520,000$ to inventory suppliers on accounts payable.January $27$Wrote off accounts receivable as uncollectible, $$2,600.$January $31$Paid cash for salaries during January, $$136,000.$

The following information is available on January $31,2024.$

At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $$100$ each.

At the end of January, $$5,700$ of accounts receivable are past due, and the company estimates that $40\%$ of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that $5\%$ will not be collected.

Accrued interest expense on notes payable for January. Interest is expected to be paid each December $31.$

Accrued income taxes at the end of January are $$14,000.$