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

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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	27,300
Accounts Receivable		15,300
Allowance for Uncollectible Accounts					$	4,200
Supplies		4,200
Notes Receivable (6%, due in 2 years)		21,000
Land		80,600
Accounts Payable						9,100
Common Stock						101,000
Retained Earnings						34,100
Totals	$	148,400			$	148,400

During January 2021, the following transactions occur:

January		2		Provide services to customers for cash, $52,100.
January		6		Provide services to customers on account, $89,400.
January		15		Write off accounts receivable as uncollectible, $3,900.
January		20		Pay cash for salaries, $33,100.
January		22		Receive cash on accounts receivable, $87,000.
January		25		Pay cash on accounts payable, $7,200.
January		30		Pay cash for utilities during January, $15,400.

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.)