The Scooter Warehouse provided the following information at December 31, 2011: Marketable Securities The company invested $26,000

Question:

The Scooter Warehouse provided the following information at December 31, 2011:

Marketable Securities
The company invested $26,000 in a portfolio of marketable securities on December 22, 2011. The portfolio€™s market value on December 31, 2011, had increased in value to $28,500.
Notes Receivable
On November 1, 2011, The Scooter Warehouse sold 25 scooters to Bermuda Fantasy Resort for $65,000. The resort paid $5,000 at the point of sale and issued a one-year, $60,000, 5 percent note for the remaining balance. The note, plus accrued interest, is due in full on October 31, 2012. The Scooter Warehouse adjusts for accrued interest revenue monthly.
Accounts Receivable
The Scooter Warehouse uses a balance sheet approach to account for uncollectible accounts expense. Outstanding accounts receivable on December 31, 2011, total $450,000. After aging these accounts, the company estimates that their net realizable value is $435,000. Prior to making any adjustment to record uncollectible accounts expense, The Scooter Warehouse€™s Allowance for Doubtful Accounts has a credit balance of $4,000.
Instructions
a. Prepare the journal entry necessary to update the company€™s accounts immediately after per-forming its bank reconciliation on December 31, 2011.
b. Prepare the journal entry necessary to adjust the company€™s marketable securities to market value at December 31, 2011.
c. Prepare the journal entry necessary to accrue interest in December 2011.
d. Prepare the journal entry necessary to report the company€™s accounts receivable at their net realizable value at December 31, 2011.
e. Discuss briefly how the entry performed in part 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.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...