Required information On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable. Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) Common Stock Retained Earnings Totals Debit $22,100 37,000 31,000 63,100 Credit $3,300 31,900 31,000 57,000 30,000 $153,200 $153,200 The $31,000 beginning balance of inventory consists of 310 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,000 units for $106,000 on account ($106 each). January 8 Purchase 1,100 units for $122,100 on account ($111 each). January 12 Purchase 1,200 units for $139,200 on account ($116 each). January 15 Return 105 of the units purchased on January 12 because of defects. January 19 Sell 3,400 units on account for $544,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $489,000 from customers on accounts receivable. January 24 Pay $319,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,600. January 31 Pay cash for salaries during January, $115,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19) b. The company records an adjusting entry for $5,410 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. The company accrues income taxes at the end of January of $12,400.
Required information On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable. Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) Common Stock Retained Earnings Totals Debit $22,100 37,000 31,000 63,100 Credit $3,300 31,900 31,000 57,000 30,000 $153,200 $153,200 The $31,000 beginning balance of inventory consists of 310 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,000 units for $106,000 on account ($106 each). January 8 Purchase 1,100 units for $122,100 on account ($111 each). January 12 Purchase 1,200 units for $139,200 on account ($116 each). January 15 Return 105 of the units purchased on January 12 because of defects. January 19 Sell 3,400 units on account for $544,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $489,000 from customers on accounts receivable. January 24 Pay $319,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,600. January 31 Pay cash for salaries during January, $115,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19) b. The company records an adjusting entry for $5,410 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. The company accrues income taxes at the end of January of $12,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
I just need to know how to find the cost of imventory sold
![Required information
On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
Accounts Payable
Notes Payable (6%, due in 3 years)
Common Stock
Retained Earnings
Totals
Debit
$22,100
37,000
31,000
63,100
$153,200
Credit
$3,300
31,900
31,000
57,000
30,000
$153,200
The $31,000 beginning balance of inventory consists of 310 units, each costing $100. During January 2024, Big Blast
Fireworks had the following inventory transactions:
January 3 Purchase 1,000 units for $106,000 on account ($106 each).
January 8 Purchase 1,100 units for $122,100 on account ($111 each).
January 12 Purchase 1,200 units for $139,200 on account ($116 each).
January 15 Return 105 of the units purchased on January 12 because of defects.
January 19 Sell 3,488 units on account for $544,000. The cost of the units sold is determined using a FIFO perpetual
inventory system.
January 22 Receive $489,000 from customers on accounts receivable.
January 24 Pay $319,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,600.
January 31 Pay cash for salaries during January, $115,000.
The following information is available on January 31, 2024.
a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are
expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after
subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19]
b. The company records an adjusting entry for $5,410 for estimated future uncollectible accounts.
c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31.
d. The company accrues income taxes at the end of January of $12,400.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7a8dbd94-952e-4e29-8247-2a80d89905df%2Fd3cac11f-66e7-493e-8a03-b6e0c7ae6e6e%2Fih5q4ty_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
Accounts Payable
Notes Payable (6%, due in 3 years)
Common Stock
Retained Earnings
Totals
Debit
$22,100
37,000
31,000
63,100
$153,200
Credit
$3,300
31,900
31,000
57,000
30,000
$153,200
The $31,000 beginning balance of inventory consists of 310 units, each costing $100. During January 2024, Big Blast
Fireworks had the following inventory transactions:
January 3 Purchase 1,000 units for $106,000 on account ($106 each).
January 8 Purchase 1,100 units for $122,100 on account ($111 each).
January 12 Purchase 1,200 units for $139,200 on account ($116 each).
January 15 Return 105 of the units purchased on January 12 because of defects.
January 19 Sell 3,488 units on account for $544,000. The cost of the units sold is determined using a FIFO perpetual
inventory system.
January 22 Receive $489,000 from customers on accounts receivable.
January 24 Pay $319,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,600.
January 31 Pay cash for salaries during January, $115,000.
The following information is available on January 31, 2024.
a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are
expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after
subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19]
b. The company records an adjusting entry for $5,410 for estimated future uncollectible accounts.
c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31.
d. The company accrues income taxes at the end of January of $12,400.
Transcribed Image Text:Journal entry worksheet
2
<
Record the cost of inventory sold.
3
Note: Enter debits before credits.
Date
January 19
Record entry
5
General Journal
Clear entry
6
7
8
Debit
9
10
Credit
View general Journal
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