1. Kiley Company had a $700 credit balance in Allowance for Doubtful Accounts (What is normal balance for the contra asset?( Debit or Credit?) at December 31, 2020, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:

			Number of Days Outstanding
	TOTAL	Current	30	31-60	61-90	Over 90
Accounts receivable	155,000	120,000	12,000	10,000	5,000	8,000
% Uncollectible		1%	3%	8%	17%	40%
Estimated bad debts		1,200

Instructions

1. Calculate the balance for the Allowance for Doubtful Accounts.
2. Prepare the adjusting entry on December 31, 2020, to recognize bad debts expense.
3. Calculate the net realizable value after your adjusting entry for December 31, 2020.

(a)			Number of Days Outstanding
	TOTAL	Current	30	31-60	61-90	Over 90
Accounts receivable	155,000	120,000	12,000	10,000	5,000	8,000
% Uncollectible		1%	3%	8%	17%	40%
Estimated bad debts		1,200

Date	Account Titles and Explanation	Ref	Debit	Credit
b)

c)

1. STROUP Supply Co. has the following transactions related to notes receivable during the last month of 2019.

Dec. 16 Received a $4,000, 6 month, 9% note in exchange for Weinbergs outstanding accounts receivable.

Dec. 31 Accrued interest revenue on all notes receivable.

1. Prepare the two journal entries required for the transactions for Stroup Supply Co.

Date	Account Titles and Explanation	Ref	Debit	Credit

1. The following information is available for Wenger Company.

Beginning accounts receivable $ 80,000 Ending accounts receivable 120,000 Net sales 1,000,000

Instructions:a) Compute the receivables turnover ratio

b) Compute the average collection period (days outstanding).

1. Discuss what this means in words. (Two sentences)