On march 2, Kwang Company sold $916,000

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: Estimated Percentage Uncollectible Current Accounts $120,000 1% 1-30 days past due 12,000 31-60 days past due 10,000 8% 61-90 days past due 5,000 17% Over 90 days dus 8,000 40% Total Accounts Receivable $155,000 396 Instructions (a) Calculate the balance for the Allowance for Doubtful Accounts. (b) Prepare the adjusting entry on December 31, 2020, to recognize bad debts expense. (c) Calculate the net realizable value after your adjusting entry for December 31, 2020. Account Titles and Explanation R ef Debit Credit 2. STROUP Supply Co. has the following transactions related to notes receivable during the last 2 months of 2015. Nov 1 Loaned $5,000 cash to Jorge Perez on a 6 month note, 4%. Dec. 16 Received a $4,000, 6 month, 9% note in exchange for Weinberg's outstanding accounts receivable. Dec. 31 Accrued interest revenue on all notes receivable. a) Prepare the three journal entries required for the transactions for Stroup Supply Co. Date Account Titles and Explanation Ref Debit Credit - 3. On March 3, Greentree Appliances sells $480,000 of its receivables to Naomi Factors, Inc. Naomi Factors assesses a finance charge of 6% of the amount of receivables sold. Prepare the entry on Greentree Appliance's books to record the sale of the receivables. List two advantages to Greentree to using a factor. Ref Debit Credit Date Account Titles and Explanation EXTRA CREDIT: List two advantages to Greentree to using a factor. 4. 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 and the average collection period (days outstanding) b) Discuss what this means to Wenger c) What would you recommend to Wenger Company