Required Information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Credit Debit $ 24,700 14,000 $ 1,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 2,900 24,000 77,400 8,600 100,000 32,800 $143,000 $143,000 During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $39,100. January 6 Provide services to customers on account, $76,400. January 15 Write off accounts receivable as uncollectible, $1,400. January 20 Pay cash for salaries, $31,800. January 22 Receive cash on accounts receivable, $74,000. January 25 Pay cash on accounts payable, $5,900. January 30 Pay cash for utilities during January, $14,100. 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.) The receivables turnover ratio is a-2. 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? More O Less b-1. Calculate the ratio of Allowance for Uncollectible Accounts to Accounts Receivable at the end of January. (Round your final answer to 1 decimal place.) Allowance for Uncollectible Accounts ratio % 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 Required Information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Credit Debit $ 24,700 14,000 $ 1,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 2,900 24,000 77,400 8,600 100,000 32,800 $143,000 $143,000 During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $39,100. January 6 Provide services to customers on account, $76,400. January 15 Write off accounts receivable as uncollectible, $1,400. January 20 Pay cash for salaries, $31,800. January 22 Receive cash on accounts receivable, $74,000. January 25 Pay cash on accounts payable, $5,900. January 30 Pay cash for utilities during January, $14,100. 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.) The receivables turnover ratio is a-2. 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? More O Less b-1. Calculate the ratio of Allowance for Uncollectible Accounts to Accounts Receivable at the end of January. (Round your final answer to 1 decimal place.) Allowance for Uncollectible Accounts ratio % 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