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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit Cash $ 27,500 Accounts Receivable 15,400

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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit Cash $ 27,500 Accounts Receivable 15,400 Allowance for Uncollectible Accounts $ 4,400 Supplies 4,300 Notes Receivable (64, due in 2 years) 22,000 Land 80,700 Accounts Payable 9,300 Common Stock 102,000 Retained Earnings 34,200 Totals $149,900 $149,900 During January 2021, the following transactions occur January 2 Provide services to customers for cash, $53, 100. January 6 Provide services to customers on account, $90,400. January 15 Write off accounts receivable as uncollectible, $4,100. January 20 Pay cash for salaries, $33,200. January 22 Receive cash on accounts receivable, $88,000. January 25 Pay cash on accounts payable, $7,300. January 30 Pay cash for utilities during January, $15,500. The following information is available on January 31, 2021. The following information is available on January 31, 2021. a. The company estimates future uncollectible accounts. The company determines $4.700 of accounts receivable on January 31 ore 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 $850. c Accrued interest revenue on notes receivable for January, Interest is expected to be received each December 31, d. Unpaid salaries at the end of January are $35,300. 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 account). If the industry average of the receivables turnover ratios for the month of January is 5.3 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? Accounts Receivablo tumover: 29.7 times The company is collecting more efficiently(true or false) True (6) Calculate the ratio of Allowance for Uncollectible Accounts to Accounts Recegyble 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 % 10 Should the company expect improving or worsening conditions? Improving

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