[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. a. The company estimates future uncollectible accounts. The company determines $5,400 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 $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 $33,900. 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.) Credit No 1 Date January 31 General Journal Bad Debt Expense Allowance for Uncollectible Accounts Debit 1,310 1,310 2. January 31 2,000 Supplies Expense Supplies 2,000 3 January 31 100 Interest Receivable Interest Revenue 100 4 January 31 33,900 Salaries Expense Salaries Payable 33,900 3. Prepare an adjusted trial balance as of January 31, 2021. 3D FAMILY FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash $ 86,000 Accounts Receivable 15,000 Allowance for Uncollectible Accounts 200 Interest Receivable Supplies 2,900 Notes Receivable 24,000 Land 77,400 Accounts Payable 2,700 Salaries Payable Common Stock 100.000 Retained Earnings 32,800 Service Revenue 115,500 Interest Revenue Salaries Expense 31,800 Utilities Expense 14,100 Supplies Expense Bad Debt Expense Totals $ 251,200 $ 251,200 * Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 4. Prepare an income statement for the period ended January 31, 2021. 3D FAMILY FIREWORKS Income Statement For the year ended January 31, 2021 Revenues: Service Revenue 115,500 Total Revenues $ 115,500 Expenses: Salaries Expense Utilities Expense Supplies Expense Bad Debt Expense 65,700 14,100 2,000 1,510 Total Expenses 83,310 Net Income $ 32,190 * Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 5. Prepare a classified balance sheet as of January 31, 2021. (Deductible amount should be indicated with by a minus slgn.) 3D Family Fireworks Balance Sheet January 31, 2021 Liabilities $ Current Liabilities: Accounts Payable Salaries Payable $ Assets Current Assets Cash Accounts Receivable Supplies Allowance for Uncollectible Accounts 2,700 33,900 86,000 15,000 900 (1,510) Total Current Liabilities 36,600 100,390 Total Liabilities 36,600 Total Current Assets Long-term assets: Land Notes Receivable 77,400 24,000 Stockholders' Equity Common Stock Retained Earnings 100,000 32,800 Total Stockholders' Equity Total Assets S 201,790 Total Liabilities & Stockholders' Equity * Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 132,800 169,400 S 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account field.) No Credit Date General Journal January 31, 2021 Service Revenue Accounts Receivable Debit 115,500 1 X 115,500 2 48,000 January 31, 2021 Retained Earnings Salaries Expense Utilities Expense 33,900 14,100 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 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 45,200.0 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 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 1,310.01% 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 O Worsening