Sullivan Equipment Sales showed the following.

Required

a. Determine the maturity dates of the March 1 and November 1 notes.

b. Prepare entries as appropriate for each date.

Analysis Component: Sullivan?s receivable turnovers at December 31, 2020 and 2021 were 7 and 7.5, respectively. Explain what this ratio measures and whether the change in the ratio for Sullivan was favourable or unfavourable.

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2020 Sold $25,000 of merchandise for $29,000 to JanCo; terms 3/5, n/15. Jan. 15 Wrote off Fedun's account in the amount of $15,000. 16 20 Collected the amount owing from the January 15 sale. Accepted a $12,000, 60-day, 7% note dated this day in granting Parker Holdings a time extension on its past-due Mar. account. Sold merchandise costing $62,000 for $71,000 to customers who used their Visa credit cards. Assume Visa charges a 1% fee and deposits the cash electronically into the retailer's account immediately at the time of sale. Apr. 15 Parker Holdings honoured the note dated March 1. Accepted a $24,000, three-month, 6% note dated this day in granting Grant Company a time extension on its past-due account. Nov. Dec. 31 Sullivan's year-end. Interest was accrued on outstanding notes receivable. Bad debts are based on an aging analysis that estimated $9,700 of accounts receivable are uncollectible. Allowance for Doubtful Accounts showed an unadjusted credit balance of $1,600 on this date. 31 2021 Grant Company dishonoured its note dated November 1, 2020. Recovered $1,500 from Derek Holston that was previously written off. Mar. Wrote off the Grant Company account. 14