The Love Bar provides catering services to local businesses. The following information was available for The Love Bar for the years ended December 31, 2019 and 2020.

Love Bar management is preparing for a meeting with its bank concerning renewal of a loan and has collected the following information related to the above balances.

1. The cash reported at December 31, 2020, reflects the following items: petty cash $1,580 and postage stamps $110. The other current assets balance at December 31, 2020, includes the checking account balance of $3,740.

2. On November 30, 2020, Love Bar agreed to accept a 6-month, $5,170 note bearing 12% interest, payable at maturity, from a major client in settlement of a $5,170 bill. The above balances do not reflect this transaction.

3. Love Bar factored some accounts receivable at the end of 2020. It transferred accounts totaling $10,000 to Final Factor, Inc. with recourse. Final Factor will receive the collections from Love Bars customers and will retain 2% of the balances. Final Factor assesses Love Bar a finance charge of 3% on this transfer. The fair value of the recourse liability is $410. However, management has determined that the amount due from the factor and the fair value of the resource obligation have not been recorded, and neither are included in the balances above.

4. Love Bar charged off uncollectible accounts with balances of $1,420. On the basis of the latest available information, the 2020 provision for bad debts is estimated to be 2.5% of accounts receivable.

Part B) Based on the above transactions, determine the balance for (1) Accounts Receivable and (2) Allowance for Doubtful Accounts at December 31, 2020. (Round answers to 0 decimal places)

Part C) Prepare the current assets section of The Love Bars balance sheet at December 31, 2020. (Round answers to 0 decimal places.) THE Love Bar Balance Sheet

Part D) Compute Love Bars current ratio and accounts receivable turnover for December 31, 2020. The accounts receivable turnover in 2019 was 4.37. (Round answers to 2 decimal places, e.g. 52.75.) Current ratio :1 Accounts receivable turnover times Click if you would like to Show Work for this question:

December 31, 2020 $ 1,690 Cash Accounts receivable Allowance for doubtful accounts Other current assets Current liabilities Total credit sales Collections on accounts receivable December 31, 2019 $ 2,130 46,200 580 8,260 38,900 201,000 190,000 7,860 44,300 250,000 228,000 Balance Sheet