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hello! i need some help please! :) can you explain and solve a and b according to the balance sheet and info provided. please help
hello! i need some help please! :) can you explain and solve a and b according to the balance sheet and info provided. please help as soon as you can. thank you again!!
On January 1, 2024, the general ledger of 3D Family Freworks includes the following account balances: During January 2024, the following transactions occur: January 2 Provide services to custoners for cash, $47,100. January 6 Provide services to custoners on account, $84,400, January 15 Write off accounts receivable as uncollectible, $2,960. (Assume the company uses the allowance method) January 20 Pay cash for salaries, $32,680. January 22 Receive cash on accounts receivable, $82,000. January 25 Pay cash on accounts payable, $6,700. January 30 Pay cash for utilities during January, $14,900. The following information is available on January 31, 2024. a. The company estimates future uncollectible accounts. The company determines $4,100 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. (Hint. Use the January 31 accounts recelvable balance calculated in the general ledger to split total accounts receivable into the $4,100 past due and the remaining amount not past due.) b. Supplies at the end of January total $850. All other supplies have been used. c. Accrued interest revenue on notes recelvable for January. Interest is expected to be received each December 31. d. Unpaid salaries at the end of January are $34,700. the general ledger to split total accounts receivable into the $4,100 past due and the remaining amount not past due.) b. Supplles at the end of January total $850. All other supplies have been used. c. Accrued interest revenue on notes receivable for January. Interest is expected to be recelved each December 31. d. Unpaid salaries at the end of January are $34,700. Enter your Accounts Recelvable turnover value rounded to 1 decimal place and Ratio of Allowance for Uncollectibie Accounts as a percentage rounded to 1 decimal place. Analyze how well 3D Family Fireworks manages its receivables (a) Calculate the receivables tumover 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 tumover ratios for the month of January is 4.5 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? Accounts Roceivabio turnover: The company is collecting more efficiently. (true or false) (b) Calculate the rabo 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 Post-closing Step by Step Solution
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