On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances:

During January 2024, the following transactions occur:
January 2 Provide services to customers for cash, $35,100.
January 6 Provide services to customers on account, $72,400. January 15 Write off accounts receivable as uncollectible, $1,000. (Assume the company uses the allowance method)
January 20 Pay cash for salaries, $31,400.
January 22 Receive cash on accounts receivable, $70,000.
January 25 Pay cash on accounts payable, $5,500.
January 30 Pay cash for utilities during January, $13,700.

Required:
1. Record each of the transactions listed above.
2. Record adjusting entries on January 31.
a. The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible.
b. Supplies at the end of January total $700. All other supplies have been used.
c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
d. Unpaid salaries at the end of January are $33,500.
3. Prepare an adjusted trial balance as of January 31, 2024, after updating beginning balances (above) for transactions during January (requirement 1) and adjusting entries at the end of January (requirement 2).
4. Prepare an income statement for the period ended January 31, 2024.
5. Prepare a classified balance sheet as of January 31, 2024.
6. Record closing entries.
7. Analyze how well 3D Family Fireworks manages its receivables:
a. Calculate the receivables turnover ratio for the month of January. If the industry average of the receivables turnover ratios for the month of January is 4.2 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry?
b. Calculate the ratio of Allowance for Uncollectible Accounts to Accounts Receivable at the end of January. Based on a comparison of this ratio to the same ratio at the beginning of January, does the company expect an improvement or worsening in cash collections from customers on credit sales?

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Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 23,900 13,600 2,500 20,000 77,000 $137,000 Credit $ 1,400 7,200 96,000 32,400 $137,000