Required Information[The following Information applies to the questions displayed below.]On January 1, 2021, the general ledger of ACME Fireworks Includes the following account balances:AccountsCashDebit.CreditAccounts ReceivableAllowance for Uncollectible Accounts$ 27,10050,200$ 6,200Inventory22,000Land66,000Equipment25,000Accumulated Depreciation3,500Accounts Payable30,500Notes Payable (6%, due April 1, 2022)70,000Common Stock55,000Retained Earnings25,100Totals$190,300$190,300During January 2021, the following transactions occur:January 2 Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchasedate.January 6 Purchase additional inventory on account, $167,000.January 15 Firework sales for the first half of the month total $155,000. All of these sales are on account. The costof the units sold is $83,800.January 23 Receive $127,400 from customers on accounts receivable.January 25 Pay $110,000 to inventory suppliers on accounts payable.January 28 write off accounts receivable as uncollectible, $6,800.January 30 Firework sales for the second half of the month total $163,000. Sales include $17,000 for cash and $146,000on account. The cost of the units sold is $89,500.January 31 Pay cash for monthly salaries, $54,000.Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipmentwas purchased, the company estimated a residual value of $5,200 and a two-year service life.■The company estimates future uncollectible accounts. The company determines $31,000 of accounts receivable on January 31 arepast due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are notpast due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balancecalculated in the general ledger.)• Accrued interest expense on notes payable for January.• Accrued Income taxes at the end of January are $15,000.By the end of January, $5,000 of the gift cards sold on January 2 have been redeemed.2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event,select "No Journal Entry Required" In the first account field.)

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Description: Required Information[The following Information applies to the questions displayed below.]On January 1, 2021, the general ledger of ACME Fireworks Includes the following account balances:AccountsCashDebit.CreditAccounts ReceivableAllowance for Uncoll

These are the journal entries that are required to be prepared by a company to prepare its…

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Accounting

On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals Debit $ 27,100 Credit 50,200 $ 6,200 22,000 66,000 25,000 3,500 30,500 70,000 55,000 25,100 $190,300 $190,300

On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals Debit $ 27,100 Credit 50,200 $ 6,200 22,000 66,000 25,000 3,500 30,500 70,000 55,000 25,100 $190,300 $190,300

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:Accounts Debit CreditCash $ 25,100Accounts Receivable 46,200Allowance for Uncollectible Accounts $ 4,200Inventory 20,000Land 46,000Equipment 15,000Accumulated Depreciation 1,500Accounts Payable 28,500Notes Payable (6%, due April 1, 2022) 50,000Common Stock 35,000Retained Earnings…
Suppose the amounts presented here are basic financial information (in millions) from the 2020 annual reports of Surf and Tide. Surf Tide Sales revenue $19,176.1 $10,381 Allowance for doubtful accounts, beginning 78.4 119 Allowance for doubtful accounts, ending 110.8 124 Accounts receivable balance (gross), beginning 2,873.7 1,743 Accounts receivable balance (gross), ending 2,994.7 1,553 Instructions a) Calculate the accounts receivable turnover and average collection period for both companies. My answer for (a) Surf Tide Net Accounts Receivable, beginning (Accounts receivable balance (gross), beginning-Allowance for doubtful accounts, beginning) (2,873.7-78.4) =2,795.3 (1,743-119) =1,624 Net Accounts Receivable, ending (Accounts receivable balance (gross), ending-Allowance for doubtful accounts, ending) (2994.7-110.8) =2,883.9 (1,553-124) =1,429 Average Net Accounts Receivable (Net Accounts Receivable, beginning+Net Accounts Receivable,…
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On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Cash Debit Credit $ 23,300 48, e00 Accounts Receivable Allowance for Uncollectible Accounts $ 4, See Inventory Land 37,800 72,108 Accounts Payable Notes Payable (6%, due in 3 years) Comnon Stack 28,9ee 37,000 63, 0e0 Retained Earnings 39,0e0 Totals $172,400 $172,48e The $37,000 beginning balance of inventory consists of 370 units, eoch costing $100. During Janusry 2021, Big Blast Fireworks had the following inventory transections: January 3 Purchase 1,6e0 units for $168,80e on account ($18s cach). January 8 Purchase 1,78e units for $187,000 on account ($11e cach). January 12 Purchase 1,8e0 units for $287, B0e on account ($115 cach). January 15 Return 135 of the units purchased on 3anuary 12 because of defcects. January 19 sell 5,280 units on account for $788,eee. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753, eee…
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