Check my work Credit Debit $ 25,700 14,500 $ 2,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (61, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 3,400 29,000 77.900 9,600 105,000 33,300 $150,500 $150,500 During January 2021, the following transactions occur January 2. Provide services to customers for cash, $44,100. January 6 Provide services to customers on account, $81,400. January 15 Write oft accounts receivable as uncollectible, $2,200. January 20 Pay canh for salaries, $32,300. January 22 Receive cash on accounts receivable, $79,000. January 25 Pay cash on accounts payable, $6,400. January 30 Pay cash for utilities during January, $14,600. The following information is available on January 31, 2021. a. The company estimates future uncollectible accounts. The company determines $5.900 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 receivable balance calculated in the general ledger) b. Supplies at the end of January total $700. 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 $34,400. Unadjusted 3D Family Fireworks Income Statement For Month Ended January 31, 2021. Revenue: + Total Revenue Expenses: Total Expenses 3D Family Fireworks Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current abilities Total Current Assets Long-term assets: Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets 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 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 Eccount). If the industry average of the receivables turnover ratios for the month of January is 4.2 times, is the company collecting cash rom 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 same ratio at the beginning of January, does the company expect an improvement or worsening in cash collections from customers on credit sales? Ratio of Allowance for Uncollectible Accounts to Accounts Receivable % Should the company expect improving or worsening conditions?
