On December 31, 2020, Walmart reported the following amounts and account balances (before adjustments):

Accounts Receivable $ 500,000

Allowance for Doubtful Accounts, credit 20,000

Net Sales 1,500,000

Cash 2,000,000

Walmart estimates that its bad debt expense is 3.5% of net sales

Walmart uses an aging schedule to estimate its uncollectible accounts. The aging of accounts receivable and the percentage of each category that is estimated to be uncollectible is:

i. Current $40,000 3%

ii. 1 - 30 days past due 15,000 7%

iii. 30-90 days past due 33,000 25%

iv. Over 90 days past due 28,000 70%

1. Using the information above, calculate the bad debt expense using the percent-of-sales method, the aging of accounts receivable method and the percent-of-accounts-receivable method (If the company estimates that 6% is uncollectable). Make the adjusting journal entries and t-accounts for every method.

2. If the accounts receivable on January 1st 2020 for Walmart was 350,000 dollars, compute the days sales in receivables.

3. Using the information from question 2 calculate the accounts receivable turnover.

4. On May 4, 2019, a 12%, 120-day, $13,000 note receivable is accepted from a customer. Calculate the interest revenue (rounded to the nearest dollar) when the note matures.