I only need help with solving the adjusting entry for uncollectable accounts and

Question

I only need help with solving the adjusting entry for uncollectable accounts and recording the closing entry for expenses (see belows attempts).

On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances Debit Credit Accounts Cash Accounts Receivable Inventory Land Equipment Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Warranty Liability Common Stock Retained Earnings $32,500e 49,800 21,800 84,800 24,000 6,000 3, 300 30,300 68,000 24,000 53,000 27,500 $ 212,100 212,100 Totals During January 2018, the following transactions occur: anuary 2 Sold gift cards totaling $11,600. The cards are redeemable for fireworks set-up services within one year of the purchase date anuary 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 20 ACME paid a warranty claim of $19,000. 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

Accounts receivable at end = 49800 beginning +153000 first half sale -127200 collections -6600write off +143000 second half sale =212000

Balance in allowance account at end (unadjusted ) =6000 beginning - 6600 writeoff = -600 debit

Estimated uncollectible account = [29000*.30]+[212000-29000]*.04

           = 8700+7320

           = 16020

Bad debt expense =estimated uncollectible account -balance in allowance account

            = 16020- (-600)

             = 16020 +600

             = 16620

Bad debt expense =$1 6620

2)Retained earning will be debited with sum of all expense = 171300+53800+800+3140+16800+16620+340 = 262800

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