kercises (Static) Seved You received partial credit in the previous attempt. O Required information Exercise 7-21 Complete the accounting cycle using long-term asset transactions (L07-4, 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: Credit Debit $ 58,700 25,000 $ 2,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (51, duo in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,300 12,000 155,000 14,800 220,000 50.000 $287.000 $287.000 During January 2021, the following transactions occur: January 1 Purchase equipment for $19,500. The company estimates a residual value of $1,500 and a five-ye service life. January 4 Pay cash on accounts payable, $9,500. January 8 Purchase additional inventory on account, $82,900. January 15 Receive cash on accounts receivable, $22,000. January 19 Pay cash for salaries, $29,800. January 28 Pay cash for January utilities, $16,500. January 30 Firework sales for January total $220,000. All of these sales are on account. The cost of the units sold is $115,000. 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 $3,000 of accounts receivabl January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining account