2 Provide services to customers for cash, $37,100. 6 Provide services to customers on account, $74,400. January January January 15 Write off accounts receivable as uncollectible, $1,000. January 20 Pay cash for salaries, $31,600. January 22 Receive cash on accounts receivable, $72,000. January 25 Pay cash on accounts payable, $5,700. January 30 Pay cash for utilities during January, $13,900 The following information is available on January 31, 2021. a. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 20 % of these accounts will no be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. The note receivable of $22,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts b. Supplies at the end of January total $800. 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 $33,700 General General Income Statement Requirement Trial Balance Balance Sheet Analysis Journal Ledger Enter your Accounts Receivable turnover value in 1 decimal place and Ratio of Allowance for Uncollectible Accounts in Whole number Analyze how well 3D Family Fireworks manages its receivables (a) Calculate the receivables turnover ratio for the month of January (Hint: For the numerator, use total services provided to customers on account). If the industry average of the receivables turnover ratios for the month of January is 4.4 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? Accounts Receivable turnover times The company is collecting more efficiently. (true or false) (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 customers on credit sales? at the beginning of January, does the company expect an improvement or worsening in cash collections from Ratio of Allowance for Uncollectible Accounts to Accounts Receivable % 2 Provide services to customers for cash, $37,100. 6 Provide services to customers on account, $74,400. January January January 15 Write off accounts receivable as uncollectible, $1,000. January 20 Pay cash for salaries, $31,600. January 22 Receive cash on accounts receivable, $72,000. January 25 Pay cash on accounts payable, $5,700. January 30 Pay cash for utilities during January, $13,900 The following information is available on January 31, 2021. a. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 20 % of these accounts will no be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. The note receivable of $22,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts b. Supplies at the end of January total $800. 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 $33,700 General General Income Statement Requirement Trial Balance Balance Sheet Analysis Journal Ledger Enter your Accounts Receivable turnover value in 1 decimal place and Ratio of Allowance for Uncollectible Accounts in Whole number Analyze how well 3D Family Fireworks manages its receivables (a) Calculate the receivables turnover ratio for the month of January (Hint: For the numerator, use total services provided to customers on account). If the industry average of the receivables turnover ratios for the month of January is 4.4 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? Accounts Receivable turnover times The company is collecting more efficiently. (true or false) (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 customers on credit sales? at the beginning of January, does the company expect an improvement or worsening in cash collections from Ratio of Allowance for Uncollectible Accounts to Accounts Receivable %