On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit
Cash $ 26,900
Accounts Receivable 15,100
Allowance for Uncollectible Accounts $3,800
Supplies 4,000
Notes Receivable (6%, due in 2 years) 19,000
Land 80,400
Accounts Payable 8,700
Common Stock 99,000
Retained Earnings 33,900
Totals $ 145,400 $145,400
During January 2021, the following transactions occur:
January 2 Provide services to customers for cash, $50,100.
January 6 Provide services to customers on account, $87,400.
January 15 Write off accounts receivable as uncollectible, $3,500.
January 20 Pay cash for salaries, $32,900.
January 22 Receive cash on accounts receivable, $85,000.
January 25 Pay cash on accounts payable, $7,000.
January 30 Pay cash for utilities during January, $15,200.
The following information is available on January 31, 2021.
The company estimates future uncollectible accounts. The company determines $4,400 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.)
Supplies at the end of January total $700.
Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
Unpaid salaries at the end of January are $35,000.