Required information [The following information applies to the questions displayed below] On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash Debit Credit $26,100 Accounts Receivable 14,700 Allowance for Uncollectible Accounts $1,400 Supplies 3,600 Notes Receivable (6%, due in 2 years) 15,000 Land 80,000 Accounts Payable 9,500 Common Stock 95,000 Retained Earnings 33,500 Totals $139,400 $139,400 During January 2024, the following transactions occur. January 2 January 61 Provide services to customers for cash, $46,100. Provide services to customers on account, $83,400. January 15 January 20 Write off accounts receivable as uncollectible, $2,500. (Assume the company uses the allowance method) Pay cash for salaries, $32,500. January 22 Receive cash on accounts receivable, $81,000. January 25 Pay cash on accounts payable, $6,600. January 30 Pay cash for utilities during January, $14,800. 2 Accounts Cash Debit Credit $26,100 Accounts Receivable 14,700 Allowance for Uncollectible Accounts. $1,400 Supplies 3,600 Notes Receivable (6%, due in 2 years) 15,000 2 of 7 Land 80,000 Accounts Payable 9,500 Common Stock 95,000 Retained Earnings 33,500 Totals $139,400 $139,400 Book During January 2024, the following transactions occur. January 2 Provide services to customers for cash, $46,100. Write off accounts receivable as uncollectible, $2,500. (Assume the company uses the allowance method) Pay cash for salaries, $32,500. January 6 Provide services to customers on account, $83,400. January 15 January 20 January 22 Receive cash on accounts receivable, $81,000. January 25 Pay cash on accounts payable, $6,600. January 30 Pay cash for utilities during January, $14,800. M 2. Record adjusting entries on January 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) a. The company estimates future uncollectible accounts. The company determines $4,000 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 to split total accounts receivable into the $4,000 past due and the remaining amount not past due) b. Supplies at the end of January total $800. All other supplies have been used 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 $34,600. 7 3. Prepare an adjusted trial balance as of January 31, 2024, after updating beginning balances (above) for transactions during January (requirement 1) and adjusting entries at the end of January (requirement 2) 3D FAMILY FIREWORKS Adjusted Trial Balance Accounts January 31, 2024 Debit Credit $ 99,300 14,600 Cashi Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable Interest Receivable Land Accounts Payable Salanes Payable Common Stock Retained Earnings Service Revenue Interest Revenue Bad Debt Expense Salaries Expense Uites Expense 67,100 4. Prepare an income statement for the period ended January 31, 2024. 3D FAMILY FIREWORKS Income Statement For the month ended January 31, 2024 Revenues: Total Revenues $ 0 Expenses: Total Expenses 0 5. Prepare a classified balance sheet as of January 31, 2024. (Amounts to be deducted should be indicated with a minus sign.) Assets Current Assets 3D FAMILY FIREWORKS Balance Sheet January 31, 2024 Current Liabilities Liabilities Total Current Liabilities Total Current Assets Long-term assets 0 Total Liabilities Stockholders' Equity Total Assets S Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the entry to close the revenue accounts. Note: Enter debits before credits. Date January 31, 2024 General Journal Debit Credit Record entry Clear entry View general joumal 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 4.4 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 (Round percentage to 1 decimal place.) 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? a-1. The receivables turnover ratio is a-2. The company collecting cash from customers b-1. Allowance for Uncollectible Accounts ratio b2. The company expects an %