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

Accounts Debit Credit

Cash $ $23,900$

Accounts Receivable $13,600$

Allowance for Uncollectible Accounts $ $1,400$

Supplies $2,500$

Notes Receivable $(6\%,$ due in $2$ years$)20,000$

Land $77,000$

Accounts Payable $7,200$

Common Stock $96,000$

Retained Earnings $32,400$

Totals $ $137,000$ $ $137,000$

During January $2024,$ the following transactions occur:

$1.$ January $2$ Provide services to customers for cash, $$35,100.$

$2.$ January $6$ Provide services to customers on account, $$72,400.$

$3.$ January $15$ Write off accounts receivable as uncollectible, $$1,000.$

$4.$ January $20$ Pay cash for salaries, $$31,400.$

$5.$ January $22$ Receive cash on accounts receivable, $$70,000.$

$6.$ January $25$ Pay cash on accounts payable, $$5,500.$

$7.$ January $30$ Pay cash for utilities during January, $$13,700.$

The following information is available on January $31,2024.$

At the end of January, $$5,000$ of accounts receivable are past due, and the company estimates that $20\%$ of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that $5\%$ will not be collected. The note receivable of $$20,000$ is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.

Supplies at the end of January total $$700.$

Accrued interest revenue on notes receivable for January. Interest is expected to be received each December $31.$

Unpaid salaries at the end of January are $$33,500.$Using the information from the requirements above, complete the 'Analysis' tab.

Note: Enter your Accounts receivable turnover ratio in $1$ decimal place and Ratio of allowance for uncollectible accounts in

whole number.

Analyze how well $3$D 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 $4\mathrm{.}2$ 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?

Ratio of Allowance for Uncollectible Accounts to Accounts Receivable

Should the company expect improving or worsening conditions?