The company estimates future uncollectible accounts. The company determines $4,200 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.) Supplies at the end of January total $900. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. Unpaid salaries at the end of January are $34,800. 1) Enter your Accounts Receivable turnover value in 1 decimal place and Ratio of Allowance for Uncollectible Accounts in Whole number. Analyze how well 3D Family Fireworks manages its receivables (a) Calculate the receivables turnover ratio for the month of January (Hint: For the numerator, use total services provided to c
The company estimates future uncollectible accounts. The company determines $4,200 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.) Supplies at the end of January total $900. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. Unpaid salaries at the end of January are $34,800. 1) Enter your Accounts Receivable turnover value in 1 decimal place and Ratio of Allowance for Uncollectible Accounts in Whole number. Analyze how well 3D Family Fireworks manages its receivables (a) Calculate the receivables turnover ratio for the month of January (Hint: For the numerator, use total services provided to c
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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Question
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts | Debit | Credit | |||||
Cash | $ | 26,500 | |||||
14,900 | |||||||
Allowance for Uncollectible Accounts | $ | 3,400 | |||||
Supplies | 3,800 | ||||||
Notes Receivable (6%, due in 2 years) | 17,000 | ||||||
Land | 80,200 | ||||||
Accounts Payable | 8,300 | ||||||
Common Stock | 97,000 | ||||||
33,700 | |||||||
Totals | $ | 142,400 | $ | 142,400 | |||
During January 2021, the following transactions occur:
January | 2 | Provide services to customers for cash, $48,100. | ||
January | 6 | Provide services to customers on account, $85,400. | ||
January | 15 | Write off accounts receivable as uncollectible, $3,100. | ||
January | 20 | Pay cash for salaries, $32,700. | ||
January | 22 | Receive cash on accounts receivable, $83,000. | ||
January | 25 | Pay cash on accounts payable, $6,800. | ||
January | 30 | Pay cash for utilities during January, $15,000. |
The following information is available on January 31, 2021.
- The company estimates future uncollectible accounts. The company determines $4,200 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.)
- Supplies at the end of January total $900.
- Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
- Unpaid salaries at the end of January are $34,800.
1) Enter your Accounts Receivable turnover value in 1 decimal place and Ratio of Allowance for Uncollectible Accounts in Whole number.
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