On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances Accounts Debit Credit Cash $ 25,900 Accounts Receivable 13,300 Allowance for Uncollectible Accounts $ 1,700 Supplies 3,000 Notes Receivable (6 , due in 2 years) 24,000 Land 56,500 Accounts Payable 5,600 Common Stock 74,500 Retained Earnings 40,900 Totals $ 122,700 $ 122,700 During January 2021, the following transactions occur 1 January 2 Provide services to customers for cash, $28,000 2 January 6 Provide services to customers on account, $82,000 3 January 15 Write off accounts receivable as uncollectible, $1,100 4 January 20 Pay cash for salaries, $34,300 5 January 22 Receive cash on accounts receivable, $76,400 6 January 25 Pay cash on accounts payable, $4,350 7 January 30 Pay cash for utilities during January, $10,900 The following information is available on January 31, 2021 At the end of January, $3,900 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 $30,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts Supplies at the end of January total $680 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 $27,800 Using the information from the requirements above, complete the 'Analysis' tab (Enter your Accounts receivable turnover ratio in 1 decimal place and Ratio of allowance for uncollectible accounts in whole number ) UnadjustedAdjustedPost closing Post closing Dates Jan 02 to Jan 31 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 4 2 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) True (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 Improving

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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,900 Accounts Receivable 13,300

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

Accounts	Debit		Credit
Cash	$	25,900
Accounts Receivable		13,300
Allowance for Uncollectible Accounts			$	1,700
Supplies		3,000
Notes Receivable (6%, due in 2 years)		24,000
Land		56,500
Accounts Payable				5,600
Common Stock				74,500
Retained Earnings				40,900
Totals	$	122,700	$	122,700

During January 2021, the following transactions occur:

1.	January	2	Provide services to customers for cash, $28,000.
2.	January	6	Provide services to customers on account, $82,000.
3.	January	15	Write off accounts receivable as uncollectible, $1,100.
4.	January	20	Pay cash for salaries, $34,300.
5.	January	22	Receive cash on accounts receivable, $76,400.
6.	January	25	Pay cash on accounts payable, $4,350.
7.	January	30	Pay cash for utilities during January, $10,900.

The following information is available on January 31, 2021.

At the end of January, $3,900 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 $30,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts?
Supplies at the end of January total $680?
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 $27,800?

Using the information from the requirements above, complete the 'Analysis' tab. (Enter your Accounts receivable turnover ratio in 1 decimal place and Ratio of allowance for uncollectible accounts in whole number.)

UnadjustedAdjustedPost-closing

Post-closing

Dates:

Jan 02

to:

Jan 31

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 4.2 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)	True

(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?	Improving