Sullivan Equipment Sales showed the following.

2014

Jan. 15 Sold $25,000 of merchandise for $29,000 to JanCo; terms 3/5, n/15.

16 Wrote off Fedun's account in the amount of $15,000.

20 Collected the amount owing from the January 15 sale.

Mar. 1, Accepted a $12,000, 60-day, 7% note dated this day in granting Parker Holdings a time extension on its past-due account.

Apr. 15, Sold merchandise costing $62,000 for $71,000 to customers who used their Visa credit cards. Visa charges a 1% fee and deposits the cash electronically into the retailer's account immediately at the time of sale.

? Parker Holdings honoured the note dated March 1.

Nov. 1, Accepted a $24,000, three-month, 6% note dated this day in granting Grant

Company a time extension on its past-due account.

Dec. 31 Sullivan's year-end. Interest was accrued on outstanding notes receivable.

31 Bad debts are based on an aging analysis that estimated $9,700 of accounts receivable are uncollectible. Allowance for Doubtful Accounts showed an unadjusted credit balance of $1,600 on this date.

2015

? Grant Company dishonoured its note dated November 1, 2014. Mar.

5 Recovered $1,500 from Derek Holston that was previously written off.

14 Wrote off the Grant Company account.

Required

a. Determine the maturity dates of the March 1 and November 1 notes.

b. Prepare entries as appropriate for each date.

Analysis Component:

Sullivan's receivable turnovers at December 31, 2014 and 2015 were 7 and 7.5, respectively. Explain what this ratio measures and whether the change in the ratio for Sullivan was favourable or unfavourable.