SPI-CC Inc. has the following information for the year ended April 30, 2021:

SPI-CC Inc.
April 30, 2021
Accounts Receivable
Customer	Total	0-30	31-60	61-90	91+
ABC	$ 159,250	$ 132,000	$ 15,600	$ 10,900	$ 750
DT	$ 38,700	$ 32,700	$ 1,500	$ 1,400	$ 3,100
Forta	$ 72,550	$ 39,800	$ 14,250	$ 17,000	$ 1,500
Zync	$ 42,100	$ 32,100	$ 10,000	$ -	$ -
Report Totals	$ 312,600	$ 236,600	$ 41,350	$ 29,300	$ 5,350

The CFO has determined that the following percentages of receivables to default:

0-30 .015

31-60 .020

61-90 .09

91+ .10

The following is the incomplete Statement of Earnings for April 30, 2021, and comparative for 2020 and 2019:

SPI-CC Inc.
April 30, 2021
Statement of Earnings
	2021	2020	2019
Net Sales	$ 1,507,819	$ 1,425,761	$ 1,375,891
COGS	$ 981,000	$ 905,000	$ 885,000
Gross Profit
Operating Expense	$ 427,891	$ 411,560	$ 399,871
Operating Income
Other Income	$ 5,100	(3,200)	$ 4,200
Net Income
Net A/R	$ 312,600	$ 297,850	$ 288,751

Required:

1. Calculate the adjustments for allowance for doubtful accounts.
2. If the preadjustment balance for doubtful accounts before the $9,400 write off was a debit $750, calculate bad debt expense. Prepare the proper entry for bad debt expense.
3. The CFO has just hired a student from ACCT 1510 to complete the statement provided above and do the following analysis. (20 marks) [HINT: Complete the missing information from the chart first]

1. Gross Profit Margin
2. Net Profit Margin
3. AR turnover
4. Average Collection Period
5. Provide some quick analysis on the ratios you calculated.