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ucation.com/hm.tpx eu On January 1, 2018, the general ledger of TNT Fireworks Includes the following account balances: Cash S 60,100 27,800 37,700 28,800 169,000 Inventory Receivable (5%, due, in2 years) Common Stock Rotained Earning 3,600 16,200 234,000 69,600 Totals 323,400 $323,400 During January 2018, the following transactions occur: January 1 Purchase equipment for $20,900. The company estimatos a residual value of $2,900 and a four-year service life. January 4 Pay cash on accounts payable, $10,900 January 8 Purchase additional inventory on account, $96,900. January 15 Receive cash on accounts receivable, $23,400 January 19 Pay cash for salaries, $31,200 January 28 Pay cash for January utilities, $17.900 January 30 Firework sales for January total $234,000. All of these sales are on account. The cost of the units sold is $122,000. The following information is available on January 31, 2018. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. At the end of January, $4,400 of accounts receivable are past due, and the company e able, tho stimates that 50% of these accounts not be collected of the remain ng accounts ree collectible and therefore is not included in the estimate of uncollectible accounts. y estimates that 3% will not be collected. The note re ceivable of $28,800 is considered fully c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $34,000 e. Accrued income taxes at the end of January are $10,400

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