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

Accounts	Debit				Credit
Cash	$	23,900
Accounts Receivable		13,600
Allowance for Uncollectible Accounts					$	1,400
Supplies		2,500
Notes Receivable (6%, due in 2 years)		20,000
Land		77,000
Accounts Payable						7,200
Common Stock						96,000
Retained Earnings						32,400
Totals	$	137,000			$	137,000

During January 2021, the following transactions occur:

January		2		Provide services to customers for cash, $35,100.
January		6		Provide services to customers on account, $72,400.
January		15		Write off accounts receivable as uncollectible, $1,000.
January		20		Pay cash for salaries, $31,400.
January		22		Receive cash on accounts receivable, $70,000.
January		25		Pay cash on accounts payable, $5,500.
January		30		Pay cash for utilities during January, $13,700.

7. Analyze how well 3D 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). (Round your final answer to 1 decimal place.)

a-2. 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?

• More

• Less

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?

• Improvement

• Worsening