The Ski Factory provided the following information at December 31, 2015:

Bank Reconciliation:

General Ledger Cash Balance, 12/31/15...$35,132	Bank Statement Balance, 12/31/15...$32,612
Bank Service Charge.......................................(50)	Deposit in transit...................................4,900
Returned customer checks marked NSF........(750)	Outstanding Checks............................(2,712)
Error in recording of office supplies................468
Adjusted cash balance, 12/31/15...............$34,800	Adjusted cash balance, 12/31/15......$34,800

Market Securities

The company invested $52,000 in a portfolio of marketable securities on December 22, 2015. The portfolio's market value on December 31, 2015, had increase in value to $57,000.

Notes Receivable

On November 1, 2015, The Ski Factory sold 250 pairs of skis to Artic Lodge for $130,000. The lodge paid $10,000 at the point of sale and issued a one-year, $120,000, 5 percent note for the remaining balance. The note, plus accrued interest, is due in full on October 31, 2016. The Ski Factory adjusts for accrued interest revenue monthly.

Accounts Receivable

The Ski Factory uses a balance sheet approach to account for uncollectible accounts expense. Outstanding accounts receivable on December 31, 2015, total $900,000. After aging these accounts, the company estimates that their net realizable value is $870,000. Prior to making any adjustment to record uncollectible accounts expense, The Ski Factory's Allowance for Doubtful Accounts has a credit balance of $8,000.

Instructions:

a. Prepare the journal entry necessary to update the company's accounts immediately after performing its bank reconciliation on December 31, 2015.

b. Prepare the journal entry necessary to adjust the company's marketable securities to market value at December 31, 2015.

c. Prepare the journal entry necessary to accrue interest in December 2015.

d. Prepare the journal entry necessary to report the company's accounts receivable at their net realizable value at December 31, 2015.

e. Discuss briefly how the entry performed in pard d affects the accounts receivable turnover rate. Does the write-off of an account receivable affect the accounts receivable turnover rate differently than the entry performed in part d? Explain.