On January 1, 2018, the general ledger of ACME Fineworks includes the account ba

Question

On January 1, 2018, the general ledger of ACME Fineworks includes the account balances: Cash Debit $ 26,900 Credit Accounts Receivable 49,800 Allowance for Jncollectible Accounts S 6,000 Inventory Land Equipment Accumulated Depreciation 21,800 64,000 24,000 3,300 Accounts Payable 30,300 Notes Payable (6%, due April 1, 2019) 68,000 53,000 25,900 s 186,500 Common Stock Retained Earnings Totals 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.

Explanation / Answer

A: Journal entries:

T accounts:

Date Particulars Debit Credit 2-Jan Cash 11,600.00 Deferred revenue 11,600.00 6-Jan Inventory 165,000.00 Accounts payable 165,000.00 15-Jan Accounts receivable 153,000.00 Sales revenue 153,000.00 15-Jan Cost of goods sold 82,800.00 Inventory 82,800.00 23-Jan Cash 127,200.00 Accounts receivable 127,200.00 25-Jan Accounts payable 108,000.00 Cash 108,000.00 28-Jan Allowance for uncollectable accounts 6,600.00 Accounts receivable 6,600.000 30-Jan Cash 18,000.00 Accounts receviables 143,000.00 Sales revenue 161,000.00 30-Jan Cost of goods sold 88,500.00 Inventory 88,500.00 31-Jan Salary expenses 53,800.00 Cash 53,800.00

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