On January 1, 2021, the general ledger of ABC Family Fireworks includes the following account balances: Accounts Debit Credit Cash $ 24,900 Accounts Receivable 14,100 Allowance for Uncollectible Accounts $ 1,800 Supplies 3,000 Notes Receivable (6%, due in 2 years) 25,000 Land 77,500 Accounts Payable 8,800 Common Stock 101,000 Retained Earnings 32,900 Totals $144,500 $144,500 During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $40,100. January 6 Provide services to customers on account, $77,400. January 15 Write off accounts receivable as uncollectible, $1,400. January 20 Pay cash for salaries, $31,900. January 22 Receive cash on accounts receivable, $75,000. January 25 Pay cash on accounts payable, $6,000. January 30 Pay cash for utilities during January, $14,200. 1. Record each of the transactions listed above. 2. Record the following adjusting entries on January 31. a. The company estimates future uncollectible accounts. The company determines $4,200 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. b. Supplies at the end of January total $900. 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 $34,800. 3. Prepare an adjusted trial balance as of January 31, 2021. 4. Prepare an income statement for the period ended January 31, 2021. 5. Prepare a classified balance sheet as of January 31, 2021. 6. Record closing entries. MBA520 OL 7. Analyze how well ABC Family Fireworks manages its receivables: a-1. Calculate the receivables turnover ratio for the month of January (Hint: For the numerator, use total services provided to customers on account). a-2. If the industry average of the receivables turnover ratios for the month of January is 4.1 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? b-1. Calculate the ratio of Allowance for Uncollectible Accounts to Accounts Receivable at the end of January. b-2. 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?