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On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances, assignment help
Question Description
E5–21 On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 23,900
Accounts Receivable 13,600
Allowance for Uncollectible Accounts $ 1,400
Supplies 2,500
Notes Receivable (6%, due in 2 years) 20,000
Land 77,000
Accounts Payable 7,200
Common Stock 96,000
Retained Earnings     32,400
 Totals $137,000 $137,000
During January 2018, the following transactions occur:
January 2 Provide services to customers for cash, $35,100.
January 6 Provide services to customers on account, $72,400.
January 15 Write off accounts receivable as uncollectible, $1,000.
January 20 Pay cash for salaries, $31,400.
January 22 Receive cash on accounts receivable, $70,000.
January 25 Pay cash on accounts payable, $5,500.
January 30 Pay cash for utilities during January, $13,700.
Required:

1.

Record each of the transactions listed above.

2.

Record adjusting entries on January 31.

a.

At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 20% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. The note receivable of $20,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.

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