Assume selected financial data for Wally World and Tarjay, two close competitors in the retail industry, are as follows:

$($$ in millions$)$ Net Sales Beginning Accounts Receivable Ending Accounts Receivable

Wally World $ $451,854$ $ $5,464$ $ $6,337$

Tarjay $72,8666,3536,127$

Required:

$1-$a$.$ Calculate the receivables turnover ratio and average collection period for Wally World and Tarjay.

$1-$b$.$ Which company has more favorable ratios?

Age Group Amount Receivable Estimated Percent Uncollectible

Not yet due $ $40,0004\%$

$0$ to $90$ days past due $16,00020\%$

$91$ to $180$ days past due $11,00025\%$

More than $180$ days past due $13,00080\%$

Total $ $80,000$

Required:

Calculate the allowance for uncollectible accounts.

Calculate bad debt expense for $2026,$ assuming the balance of Allowance for Uncollectible Accounts before adjustment is $$5,000($positive$,$ credit balance$).$

On July $19,2027,$ a customer$$s account balance of $$8,000$ is written off as uncollectible. Show the financial statement effects of this write$-$off.