CC$8-1($Algo$)$ Accounting for Receivables and Uncollectible Accounts $[$LO

$8-2,[$O $8-4]$

The following transactions occurred over the months of September to December at Nicole's

Getaway Spa $($NGS$).$

Required:

Prepare journal entries for each of the transactions. Assume a perpetual inventory system.

Estimate the Allowance for Doubtful Accounts required at December $31,$ assuming the only

receivables outstanding at December $31$ arise from the transactions listed above. NGS uses

the aging of accounts receivable method with the following uncollectible rates: one month,

$1\%$; two months, $5\%$; three months, $20\%$; more than three months, $40\%.$

The Allowance for Doubtful Accounts balance was $$40($credit$)$ before the end$-$of$-$period

adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense.

Assume the end of the previous year showed net accounts receivable of $$730,$ and net

sales for the current year are $$8,300.$ Calculate the accounts receivable turnover ratio.

Audrey's Mineral Spa has an accounts receivable turnover ratio of $8\mathrm{.}0$ times. How does

NGS compare to this competitor?

Hi thank you for your help!

PART ONE

I need the following questions for the general journal entry:$)$

$1)$Record sales revenue of $1450$ on account

$2)$Record the cost of goods sold of $760$

$3)$Record sales revenue of $310$ on account

$4)$Record the cost of goods sold of $130$

$5)$Record sales revenue of $160$ on account

$6)$Record the cost of goods sold of $120$

$7)$Record the collection of $990$ for an outstanding customer account

PART TWO

Estimate the Allowance for Doubtful Accounts required at December $31,$ assuming the only receivables outstanding at December $31$ arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, $1\%$; two months, $5\%$; three months $20\%$; more than three months $40\%$

WHAT IS THE ESTIMATED UNCOLLECTIBLE FOR:

One Month

Two Months

Three Months

More than Three Months

Total

PART THREE:

The Allowance for Doubtful Accounts balance was $$40($credit$)$ before the end$-$of$-$period adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense. Record the adjusting entry for bad debts using the aging of accounts receivable.

PART FOUR

Assume the end of the previous year showed net accounts receivable of $$730,$ and net sales for the current year are $$8,300.$ Calculate the accounts receivable turnover ratio. $($Do not round intermediate calculations. Round your final answer to $1$ decimal place$)$

PART FIVE

Audrey$$s Mineral Spa has an accounts receivable turnover ratio of $8\mathrm{.}0$ times. How does NGS compare to this competitor?

Nicole$$s Getaway Spa is $($Insert answer the choice is either faster or slower$)$ in collecting receivables from customers than its competitor.