= Homework: Week Two Question 11, P9-6 (simila... Part 1 of 5 HW Score: 68.21%, 15.01 of 22 points Score: 0 of 1 Save Summer Company has organized its accounts receivable by customer and how long each receivable has been outstanding. Summer records bad debt expense based on an analysis of an aged schedule. The following information is as of the end of the year (December 31): F: (Click the icon to view the schedule of accounts receivable.) At the beginning of the year, Summer had accounts receivable of $530,000 and a credit balance of $25,000 in its allowance for uncollectible accounts. During the year, it wrote off specific accounts receivable in the amount of $105,000. Assume no recoveries of write-offs during the year. Read the requirements ... Requirement a. Compute bad debt expense for the year ending December 31 and the net realizable value of Summer's accounts receivable as of December 31. The bad debt expense for the year ending December 31 is Requirements Schedule of accounts receivable Customer No. Over 60 Days Days Past Due Total Due Current 1-30 Days 31-60 Days $ 54,700 $ 45,000 $ 9,700 60,500 48,000 12,500 c. 10901 10902 10903 176,000 160,000 16,000 a. Compute bad debt expense for the year ending December 31 and the net realizable value of Summer's accounts receivable as of December 31. b. Prepare the journal entry to record the bad debt expense for the year. Independent of the information used in parts (a) and (b), assume that on January 1 of the current year with the net realizable value of accounts receivable equal to $468,000, the company decided to factor $350,000 of accounts receivable to Finest Factors, LTD. Finest retains 8% of the amount factored as a reserve or hold back. Finest Factors also charged Summer a 7% financing fee (7% of the total factored amount). As a result, only 85% of the proceeds are remitted. i. Prepare the journal entry to record the factoring of $350,000 of accounts receivable assuming that Summer sold the receivables without recourse. ii. Prepare the journal entry to record the factoring of $350,000 of accounts receivable assuming that Summer sold the receivables with recourse and the recourse obligation is estimated to be $10,500. 10904 34,500 25,000 $ 9,500 10905 10,200 $ 22,000 53,200 110,000 21,000 24,000 10906 86,000 $ 488,900 $ 339,000 $ 108,200 $ Totals 22,000 19,700 $ ck % uncollectible 1% 6% 28% 90% Type here to search o - * g 1 80F Clear 11:04 PM 8/18/2021 C Ice