On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Debit Credit Accounts Cash $27,500 15,400 Accounts Receivable Allowance for Uncollectible Accounts S 4,400 Supplies Notes Receivable (6%, due in 2 years) 4,300 22,000 Land 80,700 Accounts Payable Common Stock 9,300 102,000 Retained Earnings 34,200 $149,900 $149,900 Totals During January 2021, the following transactions occur 2 Provide services to customers for cash, $53,100 January 6 Provide services to customers on account, $90,400. 15 Write off accounts receivable as uncollectible, $4,100. January January 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. a. The company estimates future uncollectible accounts. The company determines $4,700 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 $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. General Journal General Income Trial Balance Balance Sheet Analysis Requirement Ledger Statement 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 $ Expenses: 0 Total Expenses $ 0 General General Income Requirement Trial Balance Balance Sheet Analysis Journal Ledger Statement Choose the appropriate accounts to complete the company's balance sheet. Make sure to select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Adjusted 3D Family Fireworks Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: $ 0 0 0 Total Current Liabilities Total Current Assets Total Liabilities 0 Stockholders' Equity Long-term assets: 0 0 0 Total Stockholders' Equity 0 0 Total Liabilities & Stockholders' Equity $ 0 Total Assets General Journal General Income Trial Balance Balance Sheet Analysis Requirement Ledger Statement 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 5.3 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? times Accounts Receivable turnover: 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
