On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances:AccountsDebitCreditCashAccounts ReceivableAllowance for Uncollectible Accounts$ 23, 30048, e00$ 4, 580InventoryLandAccounts PayableNotes Payable (6%, due in 3 ycars)37, 20072,18828,98037,00063, 0ee39, 0eeCommon StockRetained EarningsTotals$172,400 $172,480The $37,000 beginning balance of inventory consists of 370 units, eoch costing $100. During Janusry 2021, Big BlastFireworks had the following inventory transections:January 3 Purchase 1,62e units for $168, 800 on account ($1es cach).January 8 Purchase 1,7e8 units for $187,800 on account ($118 cach).January 12 Purchase 1,88e units for $207, 8ee on account ($115 cach).January 15 Return 135 of the units purchased on January 12 because of defects.January 19 Sell 5,200 units on accountfor $780,eee. The cost of the units sold is deternined using a FIFO perpetualinventory systen.January 22 Receive $753, eee from custoners on accounts receivable.January 24 Pay $520, 8ee to inventory supplicrs on accounts payable.January 27 Mrite off accounts receivable as uncollectible, $3,200.January 31 Pay cash for salaries during January, $121,e00.The following information is available on January 31, 2021.a. At the end of Jenuary, the company estimstes that the remsining units of inventory are expected to sell in February foronly $100 each.b. The company estimates future uncollectible sccounts. The company determines $4,700 of accounts receivable onJanuary 31 are psst due, and 35% of these accounts are estimated to be uncollectible. The remaining accountsreceivable on January 31 are not past due, and 5% of these accounts ere estimsted 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 January are $13,000.equired:Record esch of the transactions listed above, assuming a FIFO perpetual inventory system. (If no entry Is required for aansaction/event, select "No journal entry required" In the first account field.)View transaction letJournal entry worksheet< 1 2 36 7 8 9 104Record purchase of 1,800 units for $207,000 on account ($115 each).Note: Enter debits before crecits.DateGeneral JournalDebitСrеditJanuary 12Record entryClear entryVew general jouurmal Record the return of the 135 units purchased on January 12 because ofdefects.Note: Enter debits before crecits.DateGeneral JounalDebitCreditJanuary 15Record entryClear ontryVew general jourmal

Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash S 23, 300 Accounts Receivable Allowance for Uncollectible Accounts Inventory 48, e0e $ 4, 580 37, 80e Land 72,108 Accounts Payable Notes Payable (6%, due in 3 years) Common Stock Retained Earnings 28, 98e 37,0ee 63, 000 39,eee Totals $172,400 $172,400 The $37,000 beginning balance of inventory consists of 370 units, each costing $100. During Janusry 2021, Big Blest Fireworks had the following inventory transections: January 3 Purchase 1,62e units for $168,80e on account ($1es cach)- January 8 Purchase 1,78e units for $187, 800 on account ($118 cach). January 12 Purchase 1,s2e 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 5,200 units on aco unt for $78e, ee0. he cost of the unit sold is deternined using a FIFO perpetual inventory system. January 22 Receive $753, eee from custoners on accounts receivable. January 24 Pay $520,8ee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3,200. January 31 Pay cash for salaries during January, $121,e0e. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible sccounts. The company determines $4,700 of accounts receivable on January 31 are pst 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 estimsted to be uncollectible. (Hint: Use the January 31 accounts receiveble balance calculated in the general ledger.) C. Accrued interest expense on notes payable for Januory. Interest is expected to be paid esch December 31. d. Accrued income taxes ot the end of January are $13,000. equired: Record esch of the transactions listed above, assuming a FIFO perpetuel inventory system. (If no entry Is required for a ansaction/event, select "No journal entry required" In the first account field.) View transaction ilat Journal entry worksheet < 1 2 3 5 6 7 8 9 10 4 Record purchase of 1,800 units for $207,000 on account ($115 each). Note: Enter debits before crecits. Date General Journal Debit Credit January 12 Record entry Clear entry Vlew general journal

On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash S 23, 300 Accounts Receivable Allowance for Uncollectible Accounts Inventory 48, e0e $ 4, 580 37, 80e Land 72,108 Accounts Payable Notes Payable (6%, due in 3 years) Common Stock Retained Earnings 28, 98e 37,0ee 63, 000 39,eee Totals $172,400 $172,400 The $37,000 beginning balance of inventory consists of 370 units, each costing $100. During Janusry 2021, Big Blest Fireworks had the following inventory transections: January 3 Purchase 1,62e units for $168,80e on account ($1es cach)- January 8 Purchase 1,78e units for $187, 800 on account ($118 cach). January 12 Purchase 1,s2e 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 5,200 units on aco unt for $78e, ee0. he cost of the unit sold is deternined using a FIFO perpetual inventory system. January 22 Receive $753, eee from custoners on accounts receivable. January 24 Pay $520,8ee to inventory suppliers on accounts payable. January 27 krite off accounts receivable as uncollectible, $3,200. January 31 Pay cash for salaries during January, $121,e0e. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible sccounts. The company determines $4,700 of accounts receivable on January 31 are pst 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 estimsted to be uncollectible. (Hint: Use the January 31 accounts receiveble balance calculated in the general ledger.) C. Accrued interest expense on notes payable for Januory. Interest is expected to be paid esch December 31. d. Accrued income taxes ot the end of January are $13,000. equired: Record esch of the transactions listed above, assuming a FIFO perpetuel inventory system. (If no entry Is required for a ansaction/event, select "No journal entry required" In the first account field.) View transaction ilat Journal entry worksheet < 1 2 3 5 6 7 8 9 10 4 Record purchase of 1,800 units for $207,000 on account ($115 each). Note: Enter debits before crecits. Date General Journal Debit Credit January 12 Record entry Clear entry Vlew general journal

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...

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