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In: Accounting

On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:...

On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:
  

  Accounts Debit Credit
  Cash $ 24,500
  Accounts Receivable 13,900
  Allowance for Uncollectible Accounts $ 1,400
  Supplies 2,800
  Notes Receivable (6%, due in 2 years) 23,000
  Land 77,300
  Accounts Payable 8,400
  Common Stock 99,000
  Retained Earnings 32,700
       Totals $ 141,500 $ 141,500

During January 2018, the following transactions occur:
  

January 2 Provide services to customers for cash, $38,100.
January 6 Provide services to customers on account, $75,400.
January 15 Write off accounts receivable as uncollectible, $1,200.
January 20 Pay cash for salaries, $31,700.
January 22 Receive cash on accounts receivable, $73,000.
January 25 Pay cash on accounts payable, $5,800.
January 30 Pay cash for utilities during January, $14,000.


The following information is available on January 31, 2018.

  1. The company estimates future uncollectible accounts. The company determines $5,300 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.)
  2. Supplies at the end of January total $850.
  3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
  4. Unpaid salaries at the end of January are $33,800.

Prepare a general journal including the closing entries for revenue and expenses. Also prepare an income statement, balance sheet, and

Enter your Accounts Receivable turnover value in one decimal place and Ratio of Allowance for Uncollectible Accounts in Whole number on an analysis table.

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