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	)		Deposits 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

Marketable Securities

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

Notes Receivable

On November 1, 2015, The Ski Factory sold 250 pairs of skis to Arctic 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 Factorys Allowance for Doubtful Accounts has a credit balance of $8,000.

Instructions

a.

Prepare the journal entry necessary to update the companys accounts immediately after performing its bank reconciliation on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b.

Prepare the journal entry necessary to adjust the companys 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 companys accounts receivable at their net realizable value at December 31, 2015.