Maraton Inc. imports gourmet coffee and sells it to local restaurants. All sales are made on account with terms net $30.$ Maraton Inc. uses the perpetual inventory method and the first$-$in first out costing method. At the beginning of the year, Maraton Inc. had the following account balances

Accounts receivable balance of $$3,000$ and an allowance for doubtful accounts of $$800.$ All the amounts were owed from A Ltd$.$

Opening inventory of $100$ units at $$50$ per unit.

The company had the following transactions during the fiscal year ended December $31,2023$:

Date

Transaction

Feb. $15$

Purchase $400$ units at $$55$ per unit for cash.

Mar $15$

Received $$2,500$ from A Ltd$.$ Wrote off the remaining balance as uncollectible.

May $1$

Sold $300$ units to B Ltd$.$ on account at $$110$ per unit

May $30$

B Ltd$.$ paid the balance owed from the May $1$ sale.

Aug $1$

Purchased $300$ units at $$70$ per unit on credit.

Sep $25$

Sold $300$ units to C Ltd$.$ on account at $$120$ per unit.

Nov $15$

Purchased $200$ units at $$65$ per unit on credit.

Dec $4$

Sold $300$ units to D Ltd$.$ on account at $$125$per unit.

At the end of the year Maraton Inc. uses the aging method of estimating its uncollectible accounts. Maraton Inc. estimates that the amount that will not be collectible is $20\%$ if the receivable is overdue more than $60$ days, $10\%$ if overdue equal to or less than $60$ days and $2\%$ if not yet due.

Required

$1.$ Prepare all necessary entries to record the transactions above and to record the appropriate allowance for doubtful accounts at year end. Show your calculations. Round any intermediate values to $4$ decimal places. Round final journal entry amounts to two decimal places.

$2.$ Calculate the accounts receivable turnover ratio for the year ended December $31,2023.$