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Help!!! On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Credit Debit $ 24,900 14,100 $ 1,800 Accounts
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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Credit Debit $ 24,900 14,100 $ 1,800 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land "Accounts Payable Common Stock Retained Earnings Totals 3,000 25,000 77,500 8,888 101, eee 32,900 $144,500 $144,500 ces During January 2021, the following transactions occur January 2 Provide services to customers for Lash, $40,100. January 6 Provide services to customers on account, $77,400. January 15 Write off accounts receivable as uncollectible, $1,400. January 20 Pay cash for salaries, $31,900. January 22 Receive cash on accounts receivable, $75, eee. January 25 Pay cash on accounts payable, $6,eee. January 30 Pay cash for utilities during January, $14,200. The following information is available on January 31, 2021 a. The company estimates future uncollectible accounts. The company determines $5,500 of accounts receivable past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on J past due, and 5% of these accounts are estimated to be uncollectible. (Hint. Use the January 31 accounts receiva calculated in the general ledger.) b. Supplies at the end of January total $950. c Accrued interest revenue on notes receivable for January, Interest is expected to be received each December 3 d. Unpaid salaries at the end of January are $34,000 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Enter your Accounts Receivable turnover value in 1 decimal place and Ratio of Allowance for Uncollectible Accounts in Whole number. Analyze how woll 3D Family Fireworks manages its recevables (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 Receivablo turnover times The company is collecting more efficiently. (true or falso) (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 Ratio of Allowance for Uncollectible Accounts to Accounts Receivable % customers on credit sales? Should the company expect improving or worsening conditions Step by Step Solution
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