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On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances:
| Accounts | Debit | Credit |
| Cash | $60,700 | |
| Accounts Receivable | 29,000 | |
| Allowance for Uncollectible Accounts | | $4,200 |
| Inventory | 38,300 | |
| Notes Receivable (5%, due in 2 years) | 36,000 | |
| Land | 175,000 | |
| Accounts Payable | | 16,800 |
| Common Stock | | 240,000 |
| Retained Earnings | | 78,000 |
| Totals | $339,000 | $339,000 |
During January 2024, the following transactions occur:
| January 1 | Purchase equipment for $21,500. The company estimates a residual value of $3,500 and a five-year service life. |
| January 4 | Pay cash on accounts payable, $11,500. |
| January 8 | Purchase additional inventory on account, $102,900. |
| January 15 | Receive cash on accounts receivable, $24,000. |
| January 19 | Pay cash for salaries, $31,800. |
| January 28 | Pay cash for January utilities, $18,500. |
| January 30 | Firework sales for January total $240,000. All of these sales are on account. The cost of the units sold is $125,000. |
Information for adjusting entries:
Depreciation on the equipment for the month of January is calculated using the straight-line method.
The company records an adjusting entry for $3,100 for estimated future uncollectible accounts.
The company has accrued interest on notes receivable for January.
Unpaid salaries owed to employees at the end of January are $34,600.
The company accrued income taxes at the end of January $11,000.
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