Ski West, Incorporated, operates a downhill ski area near Lake Tahoe, California. An all$-$day adult lift ticket can be purchased for $$85.$ Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December $1$ through April $30.$ Ski West expects its season pass holders to use their passes equally throughout the season. The company$$s fiscal year ends on December $31.$

On November $6,2026,$ Ski West sells a season pass to Jake Lawson for $$450.$

Required:

When should Ski West recognize revenue from the sale of its season passes?

What are the financial statement effects from the sale of the season pass on November $6,2026?$

What will be included in Ski West$$s $2026$ income statement and balance sheet related to the sale of the season pass to Jake Lawson?

Drawing from the data available, assess the following:

Identify the three countries with the most favorable collection experience as measured by their receivables turnover ratios.

Which country appears to have the most need of improvement in collection procedures as measured by its receivables turnover ratio?

Which company in Peru is most responsible for that country$$s low turnover ratio?

IBS has established estimates for percentages of outstanding accounts receivable that are past due for the following periods of time that will be uncollectible:

$2\%030$ days

$5\%3160$ days

$10\%6190$ days

$15\%91120$ days

$20\%>120$ days

Using these estimates, calculate the Allowance for Uncollectible Accounts for South Korea.

$($$ in millions$)$ Net Sales Beginning Accounts Receivable Ending Accounts Receivable

Wally World $ $451,854$ $ $5,464$ $ $6,337$

Tarjay $72,8666,3536,127$

Required:

$1-$a$.$ Calculate the receivables turnover ratio and average collection period for Wally World and Tarjay.

$1-$b$.$ Which company has more favorable ratios?

Age Group Amount Receivable Estimated Percent Uncollectible

Not yet due $ $40,0004\%$

$0$ to $90$ days past due $16,00020\%$

$91$ to $180$ days past due $11,00025\%$

More than $180$ days past due $13,00080\%$

Total $ $80,000$

Required:

Calculate the allowance for uncollectible accounts.

Calculate bad debt expense for $2026,$ assuming the balance of Allowance for Uncollectible Accounts before adjustment is $$5,000($positive$,$ credit balance$).$

On July $19,2027,$ a customer$$s account balance of $$8,000$ is written off as uncollectible. Show the financial statement effects of this write$-$off.