Question

On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 25,100 46,200 $ 4,200 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 20,000 46,000 15,000 1,500 28,500 50,000 35,000 33,100 $152,300 Totals $152,300 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $147,000. January 15 Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800. January 23 Receive $125,400 from customers on accounts receivable. January 25 Pay $90,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $4,800. January 30 Firework sales for the second half of the month total $143,000. Sales include $11,000 for cash and account. The cost of the units sold is $79,500. January 31 Pay cash for monthly salaries, $52,000.

Answer 1

Journal Entries Date Jan 2, 2000 8000 Janc, 147000 gift card outstanding Inventory Accounts payable Accounts Receivabele Sales 147000 Janis, 135000 35000 Janis, 13800 73800 Jan 23, 125400 125400 COGS Expene Inuentory Cash. Accounts Recewalele Armounts Payalele Cash Arraunts Receivable Baddebts. Janas, 90000 90000 Janga, 4000 4800 Jan 30, Cash Accounts Recewalle Saler 11000 132000 14.3000 PAINT Jos 30, COGS Expense Inventory o Salary 79.500 49500- Jan 31, 53000 Cash & S2000