Question

Accounts	Debit				Credit
Cash	$	25,400
Accounts Receivable		46,800
Allowance for Uncollectible Accounts					$	4,500
Inventory		20,300
Land		49,000
Equipment		16,500
Accumulated Depreciation						1,800
Accounts Payable						28,800
Notes Payable (6%, due April 1, 2022)						53,000
Common Stock						38,000
Retained Earnings						31,900
Totals	$	158,000			$	158,000

During January 2021, the following transactions occur:

January		2		Sold gift cards totaling $8,600. The cards are redeemable for merchandise within one year of the purchase date.
January		6		Purchase additional inventory on account, $150,000.
January		15		Firework sales for the first half of the month total $138,000. All of these sales are on account. The cost of the units sold is $75,300.
January		23		Receive $125,700 from customers on accounts receivable.
January		25		Pay $93,000 to inventory suppliers on accounts payable.
January		28		Write off accounts receivable as uncollectible, $5,100.
January		30		Firework sales for the second half of the month total $146,000. Sales include $18,000 for cash and $128,000 on account. The cost of the units sold is $81,000.
January		31		Pay cash for monthly salaries, $52,300.

6. Record closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1