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 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 a The company estimates future uncollectible accounts The company determines $5,000 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 ) b Supplies at the end of January total $700 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 $33,500 2 Record adjusting entries on January 31 for the above transactions (If no entry is required for a particular transaction event, select No Journal Entry Required in the first account field ) The company estimates future uncollectible accounts The company determines $5,000 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 ) Record the adjusting entry for uncollectible accounts Note Enter debits before credits Date General Journal Debit Credit January 31 Supplies at the end of January total $700 Record the adjusting entry for supplies Note Enter debits before credits Date General Journal Debit Credit January 31 Accrued interest revenue on notes receivable for January Interest is expected to be received each December 31 Record the adjusting entry for interest Note Enter debits before credits Date General Journal Debit Credit January 31 Unpaid salaries at the end of January are $33,500 Record the adjusting entry for salaries Note Enter debits before credits Date General Journal Debit Credit January 31 3 Prepare an adjusted trial balance as of January 31, 2021 4 Prepare an income statement for the period ended January 31, 2021 (Amounts to be deducted should be indicated with a minus sign ) 5 Prepare a classified balance sheet as of January 31, 2021 (Amounts to be deducted should be indicated with a minus sign ) 6 Record closing entries (If no entry is required for a particular transaction event, select No Journal Entry Required in the first account field ) Record the closing entry for revenue Note Enter debits before credits Date General Journal Debit Credit January 31, 2021 Record the closing entry for expenses Note Enter debits before credits Date General Journal Debit Credit January 31, 2021 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

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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

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:

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.

a. The company estimates future uncollectible accounts. The company determines $5,000 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.) b. Supplies at the end of January total $700. 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 $33,500. 2. Record adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

The company estimates future uncollectible accounts. The company determines $5,000 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.) Record the adjusting entry for uncollectible accounts.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 31

Supplies at the end of January total $700. Record the adjusting entry for supplies.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 31

Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. Record the adjusting entry for interest.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 31

Unpaid salaries at the end of January are $33,500. Record the adjusting entry for salaries.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 31

3. Prepare an adjusted trial balance as of January 31, 2021.

4. Prepare an income statement for the period ended January 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Record the closing entry for revenue.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 31, 2021

Record the closing entry for expenses.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 31, 2021

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?

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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?