Question

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Credit Debit $ 26,100 14,700 $ 3,000 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 3,600 15,000 80,000 7,900 95,000 33,500 $139,400 $139,400 During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $46,100. January 6 Provide services to customers on account, $83,400. January 15 Write off accounts receivable as uncollectible, $2,500. January 20 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. The following information is available on January 31, 2021. 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.) b. Supplies at the end of January total $800. 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.

Answer 1

3D Family fireworks
Income Statements
For the month ended January 31-2021
		$
Revenue:
Service Income		1,29,500
Interest revenue		75
Total Revenue           (A)		1,29,575
Expenses:
Supplies expense		2,800
Salary expenses		34,600
Utilities		14,800
Bad debts		1,830
Total Expenses          (B)		54,030
Net Income                 (A)-(B)		75,545
3D Family fireworks
Balance sheet
January 31-2021
Assets	$		Liabilities	$
Current Assets			Current Liabilities
Cash	99,300		Allowable for uncollectible accounts	1,330
Accounts receivable	14,600		Acccounts payable	1,300
Notes receivable	15,000		Salaries payable	34,600
Interest receivable	75
Supplies(Inventory)	800
			Total Current Liabilities		37,230
Total Current Assets		1,29,775
			Common stock	95,000
Non Current Assets			retained earnings	77,545
Land	80,000	80,000	Net Income
			Total Liabilities
			Stockholders equity		1,72,545
			Total Stockholders equity
Total Assets		2,09,775	Total Liabilities & Stakeholders equity		2,09,775
Notes 1
Accounts receivable Account
Opening balance	14,700	Allowance for uncollectible accounts	2,500
Service Income	83,400	Cash	81,000
		Closing balance	14,600
	98,100		98,100
Notes 2
Allowance for uncollectible accounts
Accounts receivable	2,500	Opening balance	3,000
Closing b/d	1,330	Bad debts	830
	3,830		3,830
Accounts Receivable turnover	11.27413127
The company is collecting more efficiently(true/false)	TRUE
Ratio of allowance for uncollectible accounts to accounts receivable	9.109589041
Should the company expects improving or worsening conditions	The company can expect improving conditions