Question

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Debit Credit Accounts $ 24,300 Cash 13,800 Accounts Receivable Allowance for Uncollectible Accounts 1,200 Supplies Notes Receivable (6%, due in 2 years) 2,700 22,000 Land 77,200 Accounts Payable Common Stock 8,200 98,000 Retained Earnings 32,600 $140,000 $140,000 Totals During January 2021, the following transactions occur: 2 Provide services to customers for cash, $37,100 6 Provide services to customers on account, $74,400 January 15 Write off accounts receivable as uncollectible, $1,000 January January January 20 Pay cash for salaries, $31,600. January 22 Receive cash on accounts receivable, $72,000 January 25 Pay cash on accounts payable, $5,700. January 30 Pay cash for utilities during January, $13,900. The following information is available on January 31, 2021. a. The company estimates future uncollectible accounts. The company determines $5,200 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) b. Supplies at the end of January total $80O. c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31 d. Unpaid salaries at the end of January are $33,700. Journal entry worksheet 2 3 6 7 8 13 1 4 5 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Record the adjusting entry for uncollectible accounts. Note: Enter debits before credits. Debit Date General Journal Credit Bad Debt Expense Jan 31, 2021 Allowance for Uncollectible Accounts Record entry Clear entry View general journal

Answer 1

3D Family Fireworks Journal entries Debit Credit Calculation Date Account $37,100 2-Jan Cash 37,100 Service Revenue $ 74,400 6-Jan Accounts Receivable 74,400 Service Revenue 15-Jan Allowance for Uncollectible Accounts 1,000 Accounts Receivable 1,000 20-Jan Salaries expense 31,600 Cash 31,600 $ 72,000 22-Jan Cash Accounts Receivable 72,000 25-Jan Accounts Payable 5.700 Cash S 5,700 30-Jan Utilities Expense 13,900 Cash 13,900 Adjusting entries 31-Jan Bad debts expense 1,340 Allowance for Uncollectible Accounts S 1,340 31-Jan Supplies expense 1,900 -2,700-800 Supplies 1,900 -22,000*6%*1/12 31-Jan Accrued Interest Revenue 110 Interest Revenue 110 $ 33,700 31-Jan Salaries expense Salaries Payable 33,700 Closing entries $111,500 31-Jan Service Revenue S 110 Interest Revenue 111,610 Income Summary $ 82,440 31-Jan Income Summary Salaries expense 65,300 Utilities Expense 13.900 Supplies expense Bad debts expense 1,900 1,340 - 111,610-82,440 $29,170 31-Jan Income Summary Retained Earnings 29,170

Wkgs Bad debts expense Accounts Receivable Ucollectible % Uncollectible Amount Accts Rec $ 5,200 $ 10,000 $15,200 20% $ Past due 1,040 5% $ Not past due 500 $ Total 1,540 Allowance for Uncollectible Accounts Beginning Balance 1,200 $(1,000) Write off Unadjusted Ending Balance 200 Adjusted Ending Balance Bad debts expense $ 1,540 $ 1,3401,540-200

3D Family Fireworks T Accounts Date Date Date Date Credit Credit Credit Debit Credit Debit Date Debit Debit Date Date Date Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies 20-Jan 31,600 25-Jan 5,700 $ 13,800 Op bal 24,300 1,200 31-Jan $ Op bal Op bal Op bal 2,700 1,900 2-Jan $ 37,100 6-Jan $ 74,400 15-Jan $ 15-Jan 1,000 31-Jan 1,340 1,000 22-Jan 72,000 30-Jan 13,900 22-Jan 72,000 Bal. Bal. $15,200 Bal Bal. 82,200 1,540 800 Notes Receivable (6%, due in 2 years) Accounts Payable 5,700 Op bal Accrued Interest Revenue Land 31-Jan $ $ 8,200 Op bal $ 22,000 Op bal 110 77,200 25-Jan $ $ 77,200 Bal. $ 22,000 Bal. S Bal. $2,500 Bal. 110 Salaries Payable Retained Earnings Common Stock Op bal Op bal 31-Jan 33,700 98,000 $ 32,600 Bal. $ 98.000 Bal. Bal. $32,600 33,700 Salaries expense Utilities Expense Service Revenue Interest Revenue 31-Jan 31,600 2-Jan 37,100 31-Jan S 30-Jan 13,900 110 6-Jan 74,400 31-Jan 33,700 Bal. Bal. $111,500 Bal. Bal. 13,900 110 65,300 Bad debts expense Supplies expense 31-Jan $ 1,900 31-Jan S 1,340 Bal. Bal. 1,900 1,340

3D Family Fireworks Unadjusted TB Adjusted TB Debit Credit Debit Credit Account Names Cash 24,300 82,200 Accounts Receivable 15,200 13,800 Allowance for Uncollectible Accounts 1,200 1,540 Supplies 2,700 800 Accrued Interest Revenue 110 Notes Receivable (6%, due in 2 years) 22,000 22,000 Land 77,200 77,200 Accounts Payable Salaries Payable 8,200 2,500 33,700 Common Stock 98,000 98,000 Retained Earnings 32,600 32,600 Service Revenue 111,500 Interest Revenue 110 Salaries expense 65,300 Utilities Expense 13,900 Supplies expense 1,900 Bad debts expense 1,340 Totals 279,950 279,950 140,000 140,000