Exercise 5-21 Complete the accounting cycle using receivable transactions (LO5-1, 5-4, 5-5, 5-7, 5-8)

[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	$	25,100
Accounts Receivable		14,200
Allowance for Uncollectible Accounts					$	2,000
Supplies		3,100
Notes Receivable (6%, due in 2 years)		26,000
Land		77,600
Accounts Payable						9,000
Common Stock						102,000
Retained Earnings						33,000
Totals	$	146,000			$	146,000

During January 2021, the following transactions occur:

January		2		Provide services to customers for cash, $41,100.
January		6		Provide services to customers on account, $78,400.
January		15		Write off accounts receivable as uncollectible, $1,600.
January		20		Pay cash for salaries, $32,000.
January		22		Receive cash on accounts receivable, $76,000.
January		25		Pay cash on accounts payable, $6,100.
January		30		Pay cash for utilities during January, $14,300.

Exercise 5-21 Part 1

1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Exercise 5-21 Part 2

a. The company estimates future uncollectible accounts. The company determines $5,600 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 $1,000. 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 $34,100. 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.)

Exercise 5-21 Part 3

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

Exercise 5-21 Part 4

4. Prepare an income statement for the period ended January 31, 2021.

Exercise 5-21 Part 5

5. Prepare a classified balance sheet as of January 31, 2021. (Deductible amount should be indicated with by a minus sign.)

Exercise 5-21 Part 6

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

Exercise 5-21 Part 7

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.) 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.)