On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts
Debit
Credit
Cash
$\ 27,500
Accounts Receivable
15,400
$\ 4,400
Allowance for Uncollectible Accounts
Supplies
4,300
Notes Receivable (6%, due in 2 years)
22,000
Land
80,700
Accounts Payable
9,300
Common Stock
102,000
Retained Earnings
34,200
Totals
$\ 149,900
$\ 149,900
During January 2021, the following transactions occur:
January 2 Provide services to customers for cash, $53,100.
January 6 Provide services to customers on account, $90,400.
January 15 Write off accounts receivable as uncollectible, $4,100.
January 20 Pay cash for salaries, $33,200.
January 22 Receive cash on accounts receivable, $88,000.
January 25 Pay cash on accounts payable, $7,300.
January 30 Pay cash for utilities during January, $15,500.
The following information is available on January 31, 2021.
a. The company estimates future uncollectible accounts. The company determines $4,700 of accounts receivable on January 31 are
past due, and 20% 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.)
b. Supplies at the end of January total $850.
c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
d. Unpaid salaries at the end of January are $35,300.
