During 2003, Leung Enterprises Corporation recorded credit sales of $650,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales. At the beginning of the year, the balance in Net Trade Accounts Receivable was $50,000. At the end of the year, but before the bad debt expense adjustment was recorded and before any bad debts had been written off, the balance in Net Trade Accounts Receivable was $55,500.

Required: 1. Assume that on December 3 1 , 2003, the appropriate bad debt expense adjustment was recorded for the year 2003 and accounts receivable totaling $6,000 for the year were determined to be uncollectible and written off. What was the receivables turnover ratio for 2003? 2. Assume instead that on December 31, 2003, the appropriate bad debt expense adjustment was recorded for the year 2003 and $7,000 of accounts receivable was determined to be uncollectible and written off. What was the receivables turnover ratio for 2003? 3. Explain why the answers to requirements ( 1 ) and (2) differ or do not differ.