The following transactions occurred over the months of September to December at Nicoles Getaway Spa (NGS).

	September			Sold spa merchandise to Ashley Welch Beauty for $1,400 on account; the cost of these goods to NGS was $740.
	October			Sold merchandise to Kelly Fast Nail Gallery for $290 on account; the cost of these goods to NGS was $120.
	November			Sold merchandise to Raea Gooding Wellness for $140 on account; the cost of these goods to NGS was $110.
	December			Received $960 from Ashley Welch Beauty for payment on its account.

1. Estimate the Allowance for Doubtful Accounts required at December 31, assuming the only receivables outstanding at December 31 arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, 2%; two months, 5%; three months, 20%; more than three months, 35%.
2. The Allowance for Doubtful Accounts balance was $39 (credit) before the end-of-period adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense.
3. Assume the end of the previous year showed net accounts receivable of $720, and net sales for the current year are $8,200. Calculate the accounts receivable turnover ratio.
4. Audreys Mineral Spa has an accounts receivable turnover ratio of 8.0 times. How does NGS compare to this competitor?