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Maraton Inc. imports gourmet coffee and sells it to local restaurants. All sales are made on account with terms net 3 0 . Maraton Inc.

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 :
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 3% if not yet due.
Required
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.
Calculate the accounts receivable turnover ratio for the year ended December 31,2023.
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