P5-71B. (Learning Objectives 1, 7: Show how to speed up cash flow from receivables; evaluate liquidity using ratios)The comparative financial statements of Diamond Pools, Inc., for 2023, 2022, and 2021 included the following select data:

Requirements

Record Bakers November transactions, including the cost of goods sold entries for each sale.

Calculate the net realizable value of accounts receivable as of November 30.

November 3 Sold $500 of merchandise to Maxwell's Inc., which paid for the items in cash. The items cost Baker $200. November 5 Sold $1,600 of merchandise to Lemmon Co., which paid by credit card. The credit card company charges Baker a fee of 2% on credit card sales. Baker's cost of this merchandise was $592. November 10 Sold $1,500 of merchandise to Rapid City on account. Terms were 2/10, net 30 . Baker's cost of this merchandise was $500. November 11 Sold $20,000 of merchandise to Appalachian Shoppes on account. Terms were 2/10, net 30 . Baker's cost of this merchandise was $8,400. November 12 Sold $800 of merchandise to Ontario Inc., on account. Terms were 2/10, net 30 . Baker's cost of this merchandise was $344. November 18 Rapid City reported that some of the merchandise received was in a different color than ordered so it returned $100 of the merchandise. The cost to Baker was $38. November 20 Appalachian Shoppes paid the balance of what it owed for the purchase on November 11. Ontario Inc., returned $300 of the merchandise for a refund. Baker's cost of the returned merchandise was $129. Ontario Inc., paid the remaining balance owed for the purchase on November 12. Sold $7,000 of merchandise to Carlsbad Co. on account. Terms were 2/10, net 30. Baker's cost of this merchandise was $2,800. Rapid City paid the balance of what it owed for the purchase on November 10. Discovered that Eagle Enterprises, a customer owing $125 from a July transaction, declared bankruptcy and there is no chance of collection. Wrote off the balance of Eagle's account. Sold $1,300 of merchandise to Dave's One-Stop-Shop on account. Terms were 2/10, net 30 . Baker's cost of this merchandise was $245. Sales on account during the month of November for transactions not listed individually totaled $9,200. Cost of goods sold for these sales totaled $3,895. Credit card sales on account during the month of November for transactions not listed individually totaled $5,000. The credit card company charges Baker a fee of 2% on credit card sales. Cost of goods sold for these sales totaled $1,800. Cash collections on account during the month of November for transactions not listed individually totaled $7,000. (No discounts were taken by these customers. Baker made the adjusting entries for the month to accrue for estimated future returns. Baker estimates that 5% of total sales will be returned. Baker assumes that cost of goods sold is 40% of sales. Baker made an adjusting entry to estimate uncollectible account expense for the month of November. Baker estimates its uncollectible-account expense as 1% of total credit (on account) sales for the month