Accrued income taxes at the end or January are $13,000. Record theadjustment for income taxes.Note: Enter debits before credits.DateGeneral JoumalDebitCreditJanuary 31Record entryClear entryVew general jourmal On January 1, 2021, the general ledger of Big Blst Fireworks includes the following account balances:Debit$ 23, 300AccountsCreditCashAccounts ReceivableAllowance for Uncollectible AccountsInventoryLandAccounts PayableNotes Payable (6%, due in 3 years)48, e00$ 4, 58037,e0072,10028,90037,8ee63,0ne39,eeeCommon StackRetained EarningsTotals$172, 488 $172,480The $37,000 beginning balance of inventory consists of 370 units, esch costing $100. During Janusry 2021, Big BlestFireworks had the following inventory transactions:January 3 Purchase 1,688 units for $168,888 on account ($18s each).January 8 Purchase 1,78e units for $187, 800 on account ($118 cach).January 12 Purchase 1,88e units for $287, e00 on account ($115 cach).January 15 Return 135 of the units purchased on January 12 because of defects.January 19 Sell 5,2ee units on account for $788,eee. The cost of the units sold is deternined using a FIFO perpetualinventory systen.January 22 Receive $753, eee from custoners on accounts reccivable.January 24 Pay $520,eee to inventory suppliers on accounts payable.January 27 Mrite off accounts receivable as uncollectible, $3, 288.January 31 Pay cash for salaries during January, $121,000.The following information is available on January 31, 2021.a. At the end of January, the compeny estimates that the remaining units of inventory are expected to sell in February foronly $100 each.b. The company estimates future uncollectible accounts. The company determines $4,700 of accounts receivable onJanuary 31 ore psst due, and 35% of these accounts are estimated to be uncollectible. The remsining accountsreceivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use theJanuary 31 accounts receiveble balance calculated in the general ledger.)C. Accrued interest expense on notes payable for January. Interest is expected to be paid esch December 31.d. Accrued income taxes at the end of Jonuary are $13,000.a. At the end of January, the company estimates that the remsining units of inventory are expected to sell in February for only $100esch.b. The company estimates future uncollectible occounts. The company determines $4,700 of occounts receivable on January 31 arepast due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 ere not pastdue, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the Januery 31 accounts receiveble bolance calculsted inthe general ledger.)C. Accrued interest expense on notes paysble for January. Interest is expected to be paid esch December 31.d. Accrued income taxes et the end of January are $13,000.2 Record sdjusting entries on Janusry 31 for the above transsctions. (If no entry is required for a transaction/event, select "NoJournal entry required" In the first account field.)View transaction lletJournal entry worksheet< 12>34Accrued interest expense on notes payable for January. Interest is expected tobe paid each December 31. Record the adjustment for interest expense.Note: Enter debits before crecits.DateGeneral JourmalDebitCreditJanuary 31

No. Date General Journal Debit Credit 3 January 31, Interest Expense ($37,000 * 6% * 1…

On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit $ 23,300 48, 20e Cash Accounts Receivable Allowance for Uncollectible Accounts $ 4, 5ee Inventory Land 37,200 72,10e Accounts Payable Notes Payable (6t, due in 3 years) 28,900 37,eee 63,000 39,8ee Comnon Stock Retained Earnings Totals $172, 400 $172,400 The $37,000 beginning balance of inventory consists of 370 units, esch costing S100. During January 2021, Big Blest Fireworks had the following inventory transactions: January 3 Purchase 1,6ee units for $168,80e on account ($1es each). January 8 Purchase 1,70e units for $187,08e on account (S118 cach). January 12 Purchase 1,88e units for Sz07,eee on account ($115 each). January 15 Return 135 of the units purchased on 3anuary 12 because of defects. January 19 Sell 5,200 units on account for $780,020. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753,eee from customers on accounts receivable. January 24 Pay $52e, 8ee to inventory suppliers on accounts payable. January 27 Mrite off accounts receivable as uncollectible, $3,200. January 31 Pay cash for salaries during January, $121,80e. The following information is available on January 31, 2021. . At the end of January, the compeny estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncolliectible sccounts. The company determines $4700 of accounts receivable on January 31 are pest due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint Use the January 31 accounts receivable balance calculated in the general ledger.) c Accrued interest expense on notes payable for January. Interest is expected to be paid esch December 31. d. Accrued income taxes at the end of January are $13,000. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 eoch. b. The company estimates future uncollectible accounts. The company determines $4,700 of sccounts receiveble on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these sccounts are estimsted to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the generel ledger) C Accrued interest expense on notes psyeble for January. Interest is expected to be paid esch December 31. d. Accrued income taxes et the end of January are $13.00. 2 Record sojusting entries on January 31 for the above transactions. (f no entry is required for a transaction/event, select "No ournal entry required" In the first account field.) Vew transacton lst Journal entry worksheet < 1 2 > Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. Record the adjustment for interest expense. Note: Enter debits before crecits Date General Jourmal Debit Credit January 31

On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit $ 23,300 48, 20e Cash Accounts Receivable Allowance for Uncollectible Accounts $ 4, 5ee Inventory Land 37,200 72,10e Accounts Payable Notes Payable (6t, due in 3 years) 28,900 37,eee 63,000 39,8ee Comnon Stock Retained Earnings Totals $172, 400 $172,400 The $37,000 beginning balance of inventory consists of 370 units, esch costing S100. During January 2021, Big Blest Fireworks had the following inventory transactions: January 3 Purchase 1,6ee units for $168,80e on account ($1es each). January 8 Purchase 1,70e units for $187,08e on account (S118 cach). January 12 Purchase 1,88e units for Sz07,eee on account ($115 each). January 15 Return 135 of the units purchased on 3anuary 12 because of defects. January 19 Sell 5,200 units on account for $780,020. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753,eee from customers on accounts receivable. January 24 Pay $52e, 8ee to inventory suppliers on accounts payable. January 27 Mrite off accounts receivable as uncollectible, $3,200. January 31 Pay cash for salaries during January, $121,80e. The following information is available on January 31, 2021. . At the end of January, the compeny estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncolliectible sccounts. The company determines $4700 of accounts receivable on January 31 are pest due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint Use the January 31 accounts receivable balance calculated in the general ledger.) c Accrued interest expense on notes payable for January. Interest is expected to be paid esch December 31. d. Accrued income taxes at the end of January are $13,000. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 eoch. b. The company estimates future uncollectible accounts. The company determines $4,700 of sccounts receiveble on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these sccounts are estimsted to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the generel ledger) C Accrued interest expense on notes psyeble for January. Interest is expected to be paid esch December 31. d. Accrued income taxes et the end of January are $13.00. 2 Record sojusting entries on January 31 for the above transactions. (f no entry is required for a transaction/event, select "No ournal entry required" In the first account field.) Vew transacton lst Journal entry worksheet < 1 2 > Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. Record the adjustment for interest expense. Note: Enter debits before crecits Date General Jourmal Debit Credit January 31

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

See similar textbooks