I just need help on the closing entries and how to find the

I just need help on the closing entries and how to find the ratios.

Thank you for the help.

On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Debit Credit $ 27100 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings 50,200 $ 6,200 22,000 66,000 25,000 3,500 30,500 70,000 55,000 25,100 Totals $190,300 $190,300 During January 2018, the following transactions occur: January 2. Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $167,000. January 15. Firework sales for the first half of the month total $155,000. All of these sales are on account. The cost of the units sold is $83,800. January 23. Receive $127,400 from customers on accounts receivable January 25. Pay $110,000 to inventory suppliers on accounts payable. January 28. Write off accounts receivable as uncollectible, $6,800 January 30. Firework sales for the second half of the month total $163,000. Sales include $17,000 for cash and $146,000 on account. The cost of the units sold is $89,500 January 31. Pay cash for monthly salaries, $54,000.

Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Date Account Debit Credit Jan 31 Depreciation Expense 825 (25000-5200)/24 Accumulated Depreciation 825 Jan 31 Bad Debt Expense 13760 Allowance for uncollectible accounts 13760 Jan 31 Interest Expense 350 Accrued Interest Payable 350 Jan 31 Income Tax Expense 15000 Accrued Income Tax Payable 15000 Jan 31 Deferred Sales Revenue 5000 Sales Revenue 5000 Calculation of Allowance for uncollectible: Beginning 50200 Add Sale 155000 Less: Collection -127400 Add: Sale 146000 Less: Collection -89500 Less: Written off -6800 Ending Balance 127500 30% Uncollectible 31000 30% 9300 4% Uncollectible 96500 4% 3860 Ending balance of Uncollectible 13160 Less: Beginning -6200 Add: Written off 6800 To be Expenses out 13760 Current Ratios: Current Assets/Current Liabilities Acit Test Ratio: Current Assets-Inventory/Current Liabilities If note payable is due on April 1, 2018, this will be considered as current liabilities: Current Assets/Current Liabilities