(Solved):     On January 1, 2024, the general ledger of 3D Family Fireworks includes the follow ...

 

 

On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances: During January 2024 , the following transactions occur: January 2 Provide services to customers for cash, \( \$ 43,100 \). January 6 Provide services to customers on account, \( \$ 80,400 \). January 15 Write off accounts receivable as uncollectible, \$2,000. (Assume the company uses the allowance January 20 Pay cash for salaries, \( \$ 32,200 \). January 22 Receive cash on accounts receivable, \( \$ 78,000 \). January 25 Pay cash on accounts payable, \( \$ 6,300 \). January 30 Pay cash for utilities during January, \( \$ 14,500 \). The following information is available on January \( 31,2024 \). a. The company estimates future uncollectible accounts. The company determines \( \$ 5,800 \) 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 dast due and \( 5 \% \) of these accounts are estimated to be uncollectible. (Hint Use the Januarv 31 accounts receivable During January 2024 , the following transactions occur: January 2 Provide services to customers for cash, \( \$ 43,100 \). January 6 provide services to customers on account, \( \$ 80,400 \). January 15 write off accounts receivable as uncollectible, \( \$ 2,000 \). (Assume the company uses the allowance method) January 20 pay cash for salaries, \( \$ 32,200 \). January 22 Receive cash on accounts receivable, \( \$ 78,000 \). January 25 pay cash on accounts payable, \$6,300. January 30 Pay cash for utilities during January, \( \$ 14,500 \). The following information is available on January \( 31,2024 \). a. The company estimates future uncollectible accounts. The company determines \( \$ 5,800 \) 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 to split total accounts receivable into the \( \$ 5,800 \) past due and the remaing amount not past due.) b. Supplies at the end of January total \$650. All other supplies have been used. c. Accrued interest revenue on notes receivable for January. Interest is expected to beceived bech 31. d. Unpaid salaries at the end of January are \( \$ 34,300 \).