Question

Adjusted 3D Family Fireworks Trial Balance January 31, 2021 Account Title Credit $ Debit 89,400 14,600 1,630 Cash Accounts Receivable Allowance for Uncollectible Accounts Notes Receivable Interest Receivable Supplies 30,000 125 750 78,000 Land Accounts Payable Salaries Payable Common Stock Retained Earnings Service Revenue Interest Revenue Supplies Expense Salaries Expense Utilities Expense Bad Debt Expense Total 3,300 34,500 106,000 33,400 119,500 125 2,750 66,900 14,700 1,230 298,455 $ 298,455

Answer 1

	Account Titles	Debit	Credit
12	Service Revenue	$       1,19,500
	Interest Revenue	$                125
	Retained Earnings		$         1,19,625
	(To close revenue accounts)
13	Retained Earnings	$          85,580
	Supplies expense		$              2,750
	Salaries Expense		$            66,900
	Utilities expense		$            14,700
	Bad Debt Expense		$              1,230
	(To close expense accounts)

Income Statement
Revenues
Service Revenue	$       1,19,500
Interest Revenue	$                125
Total Revenues		$         1,19,625
Expenses
Supplies expense	$             2,750
Salaries Expense	$          66,900
Utilities expense	$          14,700
Bad Debt Expense	$             1,230
Total Expenses		$            85,580
Net Income		$            34,045
Statement of Retained Earnings
Beginning Balance	$          33,400
Add : Net income	$          34,045
Less Dividend	$                   -
Ending Balance	$          67,445
Balance Sheet
Assets
Current Assets
Cash	$          89,400
Accounts Receivable	$          14,600
Less Allowance for Uncollectible accounts	$           -1,630
Notes Receivable	$          30,000
Interest Receivable	$                125
Supplies	$                750
Total Current Assets		$        1,33,245
Non Current Assets
Land		$            78,000
Total Assets		$        2,11,245
Liabilities & Stockholder's Equity
Current Liabilities
Accounts Payable	$             3,300
Salaries Payable	$          34,500
Total Current Liabilities		$            37,800
Stockholder's Equity
Common Stock	$       1,06,000
Retained Earnings	$          67,445
Total Stockholder's Equity		$        1,73,445
Total Liabilities & Stockholder's Equity		$        2,11,245

Accounts Receivable Turnover = Net Credit Sales / Accounts Receivable
= 82400/14600 = 5.64

True, the company is collecting more efficiently

Ratio of Allowance for Uncollectible accounts to accounts receivable = $1630/14600 = 11.16%

Beginning of year ratio = $2800/14600 = 19.18%

Improving conditions, since ratio declines