On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit $ 25,900 Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (5%, due in 2 years) 14,600 2,800 3,500 30,000 78,000 Land Accounts Payable 9,800 106,000 33,400 Common Stock Retained Earnings $152,000 $152,000 Totals During January 2021, the following transactions occur: 2 Provide services to customers for cash, $45,100. 6 Provide services to customers on account, $82,400. January January January 15 Write off accounts receivable as uncollectible, $2,400. January 20 Pay cash for salaries, $32,400 January 22 Receive cash on accounts receivable, $80,000. January 25 Pay cash on accounts payable, $6,500. January 30 Pay cash for utilities during January, $14,700. The following information is available on January 31, 2021. a. The company estimates future uncollectible accounts. The company determines $6,000 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 $750. 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 $34,500. General General Income Statement Requirement Trial Balance Balance Sheet Analysis Journal Ledger Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Adjusted 3D Family Fireworks Income Statement For Month Ended January 31, 2021 Revenue: Total Revenue 0 Expenses: Total Expenses 0 $ 0 Balance Sheet> Trial Balance Adjusted 3D Family Fireworks Balance Sheet January 31, 2021 Assets Liabilities Current Assets Current Liabilities $ 0 0 0 0 Total Current Liabilities Total Current Assets 0 Total Liabilities Stockholders' Equity Long-term assets: 0 Total Stockholders' Equity 0 0 Total Liabilities & Stockholders' Equity $ S Total Assets General Journal Income Statement General Trial Balance Requirement Balance Sheet Analysis Ledger 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 account). If the industry average of the receivables turnover ratios for the month of January is 4.3 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
