Question

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	27,700
Accounts Receivable		15,500
Allowance for Uncollectible Accounts					$	4,600
Supplies		4,400
Notes Receivable (6%, due in 2 years)		23,000
Land		80,800
Accounts Payable						9,500
Common Stock						103,000
Retained Earnings						34,300
Totals	$	151,400			$	151,400

During January 2021, the following transactions occur:

January		2		Provide services to customers for cash, $54,100.
January		6		Provide services to customers on account, $91,400.
January		15		Write off accounts receivable as uncollectible, $4,300.
January		20		Pay cash for salaries, $33,300.
January		22		Receive cash on accounts receivable, $89,000.
January		25		Pay cash on accounts payable, $7,400.
January		30		Pay cash for utilities during January, $15,600.

The following information is available on January 31, 2021.

1. The company estimates future uncollectible accounts. The company determines $4,800 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.)
2. Supplies at the end of January total $900.
3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
4. Unpaid salaries at the end of January are $35,400.

Please prepare an unadjusted, adjusted, and post-closing trial balance.

Answer 1

Please comment for any explanation,

Thanks,