At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. The company estimates future uncollectible accounts. The company determines $5,300 of accounts receivable on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. Accrued income taxes at the end of January are $13,600. 6. Record closing entries.

CLOSING ENTRIES

31 JAN Debit Inventory write down $1840 Credit inventory

       Debit   provision for doubtful debts adjustment $1775 Credit Provision for bad debts $1775

       Debit interest expense $215 Credit Interest payable $215

       Debit Taxation expense $13,600 Credit Tax payable $13600

Explanation:

closing inventory= 430+1150+1250+(1350-165)-3900= 115*116 = 13340

vs NRV =115*100 = 11500

write down = 13340-11500=1840

Provision for doubtful debts =

5300*0.35= 1855

remaining accounts receivables =  $624000+43000= 667000-573000 =94000*3%= 2820

provision = 2820+1855 =4675  

Interest 43000*6%*1/12=215

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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