At December 31, 2024, Nicholay Industries reports the following selected accounts from the unadjusted trial balance for its first year of operations:

Instructions
a. Prepare the journal entry to record the bad debt expense on December 31, 2024, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible.
b. Prepare the current assets section of the balance sheet for Nicholay Industries on December 31, 2024.
c. Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business.)

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Account Accounts payable Accounts receivable Cash Cost of goods sold Interest receivable Interest revenue Merchandise inventory Notes receivable, due April 10, 2025 Prepaid insurance Sales Sales returns and allowances Short-term investments Unearned revenue Debit $ 700,000 40,000 1,750,000 1,125 325,000 45,000 8,000 100,000 50,000 Credit $ 350,000 2,250 4,000,000 25,000