On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	25,100
Accounts Receivable		14,200
Allowance for Uncollectible Accounts				$	2,000
Supplies		3,100
Notes Receivable (6%, due in 2 years)		26,000
Land		77,600
Accounts Payable					9,000
Common Stock					102,000
Retained Earnings					33,000
Totals	$	146,000		$	146,000

During January 2018, the following transactions occur:

January	2		Provide services to customers for cash, $41,100.
January	6		Provide services to customers on account, $78,400.
January	15		Write off accounts receivable as uncollectible, $1,600.
January	20		Pay cash for salaries, $32,000.
January	22		Receive cash on accounts receivable, $76,000.
January	25		Pay cash on accounts payable, $6,100.
January	30		Pay cash for utilities during January, $14,300.

The following information is available on January 31, 2018.

1. The company estimates future uncollectible accounts. The company determines $5,600 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.)
2. Supplies at the end of January total $1,000.
3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
4. Unpaid salaries at the end of January are $34,100.

No Date General Journal Debit Credit 1 Jan 02 Cash 41,100 Service revenue 41.100 2 2 Jan 06 Accounts receivable 78.400 Service revenue 78,400 3 Jan 15 1,600 Allowance for uncollectible accounts Accounts receivable 1,600 4 Jan 20 32,000 Salaries expense Cash 32,000 5 Jan 22 Cash 76,000 Accounts receivable 76,000 6 Jan 25 6.100 Accounts payable Cash 6,100 7 Jan 30 14,300 Utilities expense Cash 14,300 8 Jan 31 1,590 Bad debt expense Allowance for uncollectible accounts 1,590 9 Jan 31 Supplies expense Supplies 10 Jan 31 Interest receivable Interest revenue 11 Jan 31 Salaries expense Salaries payable 12 Jan 31 Service revenue Interest revenue 13 Jan 31 Income taxes payable Salaries expense Utilities expense Bad debt expense Supplies expense 3D Family Fireworks Balance Sheet January 31, 2018 Assets Liabilities Current Assets: Current Liabilities: Total Current Liabilities 0 0 Total Current Assets Noncurrent Assets: 0 Total Liabilities Stockholders' Equity: 0 Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity Total Assets $ 0 Analyze how well 3D Family Fireworks manages its receivables 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 4.5 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 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