Question

On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances: During January 2024, the foliowing transactions occur: January 2 Provide gervicen to customers for cash, $41,100. January 6 Provide servicen to custymern on account, $78,400. January 15 Nrite off accounte receibable as uncolleetible, $1,600. (Aasume the conpany uses the allowance method) January 20 pay cash for salaries, $32,000. January 22 Receive cash on accounts receivable, $76,000. January 25 Pay cash on accounts payable, $6,100. January 30 Pay cash for utilities during January, $14,300. The following information is available on January 31, 2024. a. The company estimates future uncollectible accounts. The company determines $5,600 of accounts recelvable 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 recelvable balance calculated in the general ledger to split total accounts receivable into the $5,600 past due and the remaining amount not past due.) b. Supplies at the end of January total $1,000. All other supplies have been used. c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31 . d. Unpaid saiaries at the end of January are $34,100. Note: Enter debits before credits.

Answer 1

The question involves recording transactions in the general ledger and considers the accounting entries for revenue, receivables, bad debt, payment of expenses, and end-of-month adjustments for estimates of uncollectible receivables.

Step-by-step explanation:

The question asks about accounting transactions and adjustments for a company named 3D Family Fireworks. The student has offered a series of transactions and adjustments that must be addressed in the general ledger of the company. The correct accounting entries would involve recognizing revenue, accounts receivable, bad debt expense, accounts payable, accrued expenses, and adjusting entries for allowances for doubtful accounts.

For example, when providing services to customers on account, the entry would debit accounts receivable and credit service revenue. A write-off entry for uncollectible receivables would debit the allowance for doubtful accounts and credit accounts receivable. The adjustment for estimated uncollectibles at the end of the month would debit bad debts expense and credit allowance for doubtful accounts, based on the analysis of the accounts receivable aging. Paying cash for expenses like salaries and utilities would involve debiting the respective expense accounts and crediting cash.

Answer 2

Here's a summary of the transactions for January 2024 and the relevant account balances:

Transactions:

January 2: Provide services to customers for cash, $41,100

January 6: Provide services to customers on account, $78,400

January 15: Write off accounts receivable as uncollectible, $1,600

January 20: Pay cash for salaries, $32,000

January 22: Receive cash on accounts receivable, $76,000

January 25: Pay cash on accounts payable, $6,100

January 30: Pay cash for utilities during January, $14,300

Account Balances:

Accounts Receivable: $46,900

Allowance for Uncollectible Accounts: $2,950

Accounts Payable: $19,700

Cash: $36,800

The account balances reflect the impact of the transactions and the adjustments for uncollectible accounts.