Dog, inc., reported the following receivable in its December 31, 2020, year-end balance sheet:

Current assets:

Accounts receivable, net of 53,000 in allowance for uncollectibe accounts. $385,000

Interest receivable $19,700

Notes receivable $420,000

Additional information:

1. The notes receivable account consists of two notes: a $110,000 note and a $310,000 note. The $110,000 note is dated October 31, 2020, with principal and interest payable on October 31, 2021. The $ 310,000 note is dated March 31, 2020, with principal and 8% interest payable on March 31, 2020. Determine the interest rate for the $110,000 note first.

2. During 2021, sale revenue totaled $2,130,000, $1,990,000 cash was collected from customers, and $42,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 9% of year-end gross accounts receivable. (use t accounts)

Required:

1. Calculate the interest revenue and bad debt expense amounts that will appear in Dog's inc. 2021 income statement?

2. Calculate the receivable turnover ratio for 2021 (Round to the 2 decimal places)