Can someone explain this please?

c. Explain why We replace it with an interest-bearing note. The Ski Factory provided the following information at December 31, year 1. LO7-1, L07-3, LO7-4, LO7-5. LO7-6, LO7-7, LO7-8 PROBLEM 7.7A Short Comprehensive Problem Bank Reconciliation Bank statement balance, 12/31/year 1 ................. $32,612 Deposits in transit................ 4,900 Outstanding checks .............. (2.712) General ledger cash balance. 12/31/year 1 ..... $35.132 Bank service charge............. (50) Returned customer checks marked NSF (750) Error in recording of office supplies.. 468 Adjusted cash balance, 12/31/year 1 ....... $34,800 Adjusted cash balance, 12/31/year 1............ $34,800 Marketable Securities The company invested $52,0x30 in a portfolio of marketable securities on December 22. year 1. The portfolio's market value on December 31, year 1, had increased in value to $57,000. Notes Receivable On November 1, year 1, The Ski Factory sold 250 pairs of skisto Arctic Lodge for $130,000. The lodge paid $10,000 at the point of sale and issued a one-year, $120,000, 5 percent note for the remaining balance. The note, plus accrued interest is due in full on October 31, year 2. The Ski Factory adjusts for accrued interest revenue monthly. Accounts Recelvable The Ski Factory uses a balance sheet approach to account for uncollectible accounts expense. Out standing accounts receivable on December 31, year 1, total $900,000. After aging these accounts, the company estimates that their net realizable value is $870,000. Prior to making any adjustment to record uncollectible accounts expense, The Ski Factory's Allowance for Doubtful Accounts has a credit balance of $8,000. Instructions . Prepare the journal entry necessary to update the company's accounts immediately after per forming its bank reconciliation on December 31, year 1. Financial & Managerial Accounting: The Basis for Business Decisions, 18th Edition 349 Problem Set A 335 b. Prepare the journal entry necessary to adjust the company's marketable securities to market value at December 31, year 1. Prepare the journal entry necessary to accrue interest in December, year 1. d. Prepare the journal entry necessary to report the company's accounts receivable at their net realizable value at December 31, year 1. e. Discuss briefly how the entry performed in part d affects the accounts receivable turnover rate. Does the write-off of an account receivable affect the accounts receivable turnover rate differently than the entry performed in part d? Explain