Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 11

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

Marketable Securities
The company invested $52,000 in a portfolio of marketable securities on December 22, 2015.he portfolio's 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.he lodge paid $10,000 at the point of sale and issued a one-year, $120,000, 5 percent note for the remaining balance.he note, plus accrued interest, is due in full on October 31, 2016.he Ski Factory adjusts for accrued interest revenue monthly.
Accounts Receivable
The Ski Factory uses a balance sheet approach to account for uncollectible accounts expense.utstanding accounts receivable on December 31, 2015, total $900,000.fter aging these accounts, the company estimates that their net realizable value is $870,000.rior 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.repare the journal entry necessary to update the company's accounts immediately after performing its bank reconciliation on December 31, 2015.
b.repare the journal entry necessary to adjust the company's marketable securities to market value at December 31, 2015.
c.repare the journal entry necessary to accrue interest in December 2015.
d.repare the journal entry necessary to report the company's accounts receivable at their net realizable value at December 31, 2015.
e.iscuss briefly how the entry performed in part d affects the accounts receivable turnover rate.oes the write-off of an account receivable affect the accounts receivable turnover rate differently than the entry performed in part d Explain.