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On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts...

On January 1, 2020, the general ledger of a Company includes the following account balances:

Accounts Debit Credit
Cash $ 84,000
Accounts Receivable 53,000
Allowance for Uncollectible Accounts $ 5,000
Inventory 44,000
Building 84,000
Accumulated Depreciation 24,000
Land 214,000
Accounts Payable 34,000
Notes Payable (8%, due in 3 years) 48,000
Common Stock 114,000
Retained Earnings 254,000
Totals $ 479,000 $ 479,000


The $44,000 beginning balance of inventory consists of 400 units, each costing $110.

During January 2020, the following transactions occurred:

January 2 Received a $34,000 6-month, 6% note on a loan the company made to another company
January 5 Purchased 5,000 units of inventory on account for $500,000 ($100 each) with terms 1/10, n/30.
January 8 Returned 130 defective units of inventory purchased on January 5.
January 15 Sold 4,800 units of inventory on account for $576,000 ($120 each) with terms 2/10, n/30. Record 2 entries for this transaction.
January 17 Customers returned 100 units sold on January 15. These units were originally purchased by the company on January 5. The units were placed in inventory to be sold in the future. Record 2 entries for this transaction.
January 20 Received cash from customers on accounts receivable. This amount includes $50,000 from 2019 plus amount receivable on sale of 4,200 units sold on January 15.
January 21 Wrote off remaining accounts receivable from 2019.
January 24 Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 4,600 units on January 5.
January 28 Paid cash for salaries during January, $42,000.
January 29 Paid cash for utilities during January, $24,000.
January 30 Paid dividends, $3,000.


The following information is available on January 31, 2020 for adjusting entries at the end of the month.

  1. Company estimated that 10% of the January 31 accounts receivable balance will not be collected.
  2. Accrued interest on notes receivable for January.
  3. Accrued interest on notes payable for January.
  4. Accrued income taxes at the end of January for $6,400.
  5. Depreciation on the building, $3,400.

Please record the adjusting entries with the information given above

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