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On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	26,500
Accounts Receivable		49,000
Allowance for Uncollectible Accounts				$	5,600
Inventory		21,400
Land		60,000
Equipment		22,000
Accumulated Depreciation					2,900
Accounts Payable					29,900
Notes Payable (6%, due April 1, 2019)					64,000
Common Stock					49,000
Retained Earnings					27,500
Totals	$	178,900		$	178,900

During January 2018, the following transactions occur: January 2. Sold gift cards totaling $10,800. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $161,000. January 15. Firework sales for the first half of the month total $149,000. All of these sales are on account. The cost of the units sold is $80,800. January 23. Receive $126,800 from customers on accounts receivable. January 25. Pay $104,000 to inventory suppliers on accounts payable. January 28. Write off accounts receivable as uncollectible, $6,200. January 30. Firework sales for the second half of the month total $157,000. Sales include $15,000 for cash and $142,000 on account. The cost of the units sold is $86,500. January 31. Pay cash for monthly salaries, $53,400.

adjusting entry info:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,600 and a two-year service life. 2. At the end of January, $25,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. 3. Accrued interest expense on notes payable for January. 4. Accrued income taxes at the end of January are $14,400. 5. By the end of January, $4,400 of the gift cards sold on January 2 have been redeemed.

Prepare a multiple-step income statement for the period ended January 31, 2018.

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