Question

[The following information applies to the questions displayed below.]
  
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:
  

Accounts	Debit			Credit
Cash	$	26,900
Accounts Receivable		49,800
Allowance for Uncollectible Accounts				$	6,000
Inventory		21,800
Land		64,000
Equipment		24,000
Accumulated Depreciation					3,300
Accounts Payable					30,300
Notes Payable (6%, due April 1, 2019)					68,000
Common Stock					53,000
Retained Earnings					25,900
Totals	$	186,500		$	186,500

  
During January 2018, the following transactions occur:

January 2. Sold gift cards totaling $11,600. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $165,000.
January 15. Firework sales for the first half of the month total $153,000. All of these sales are on account. The cost of the units sold is $82,800.
January 23. Receive $127,200 from customers on accounts receivable.
January 25. Pay $108,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $6,600.
January 30. Firework sales for the second half of the month total $161,000. Sales include $18,000 for cash and $143,000 on account. The cost of the units sold is $88,500.
January 31. Pay cash for monthly salaries, $53,800.

1.

value:
15.00 points

Required information

1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

Answer 1

Date	description	DR	CR
2-Jan	Cash AC DR	11600
	To deferred revenue		11600
	[being the gift cards can be redemmed for goods]
6-Jan	Inventory AC DR	165000
	To accounts payable		165000
15-Jan	Accounts receivables AC DR	153000
	To sales ac CR		153000
	[being the sales are on credit basis]
	Cogs of goods sold AC DR	82800
	TO inventory ac CR		82800
	[being the cost of goods sold has been moved to inventory for inventory reduction]
23-Jan	Cash AC DR	127200
	To Accounts receivables AC CR		127200
	[Being cash has been collected]
25-Jan	Accounts payables AC dr	108000
	To accounts payable AC CR		108000
	[being suppliers are paid]
28-Jan	allowance for uncollectable debts AC DR	6000
	Bad debts expenses AC DR	600
	To accounts receivables		6600
	[being the bad debts are wrriten off]
30-Jan	cash ac dr	18000
	accounts receivables ac dr	143000
	to sales ac cr		161000
	[being the sales are on cash and credit basis]
	Cogs of goods sold AC DR	88500
	TO inventory ac CR		88500
	[being the cost of goods sold has been moved to inventory for inventory reduction]
31-Jan	Salaries ac dr	53800
	To cash ac		53800
	[being salaries are paid in cash]