PLEASE DO ALL REQUIREMENTS

Saturn Company has organized its accounts receivable by customer and how long each receivable has been outstanding. Saturn records bad debt expense based on an analysis of an aged schedule. The following information is as of the end of the year (December 31 ): (Click the icon to view the schedule of accounts receivable.) At the beginning of the year, Saturn had accounts receivable of $450,000 and a credit balance of $32,000 in its allowance for uncollectible accounts. During the year, it wrote off specific accounts receivable in the amount of $110,000. Assume no recoveries of write-offs during the year. Read the requirements. Requirement a. Compute bad debt expense for the year ending December 31 and the net realizable value of Saturn's accounts receivable as of December 31. The bad debt expense for the year ending December 31 is a. Compute bad debt expense for the year ending December 31 and the net realizable value of Saturn's accounts receivable as of December 31 . b. Prepare the journal entry to record the bad debt expense for the year. c. Independent of the information used in parts (a) and (b), assume that on January 1 of the current year with the net realizable value of accounts receivable equal to $468,000, the company decided to factor $420,000 of accounts receivable to Fast Factors, LTD. Fast retains 8% of the amount factored as a reserve or hold back. Fast Factors also charged Saturn a 7% financing fee ( 7% of the total factored amount). As a result, only 85% of the proceeds are remitted. i. Prepare the journal entry to record the factoring of $420,000 of accounts receivable assuming that Saturn sold the receivables without recourse. ii. Prepare the journal entry to record the factoring of $420,000 of accounts receivable assuming that Saturn sold the receivables with recourse and the recourse obligation is estimated to be $10,500. Schedule of accounts receivable