year $($December $31)$:

$($Click the icon to view the schedule of accounts receivable.$)$ of write$-$offs during the year.

Read the requirements.

Requirement a$.$ Compute bad debt expense for the year ending December $31$ and the net realizable value of Summer's accounts receivable as of December $31.$

The bad debt exp

Requirements

Schedule of accounts receivable

a$.$ Compute bad debt expense for the year ending December $31$ and the net realizable value of Summer's accounts receivable as of December $31.$

b$.$ Prepare the journal entry to record the bad debt expense for the year.

c$.$ Independent of the information used in parts $($a$)$ and $($b$),$ assume that on January $1$ of the current year with the net realizable value of accounts receivable equal to $\backslash (\backslash$$ $474,000\backslash ),$ the company decided to factor $\backslash (\backslash$$ $420,000\backslash )$ of accounts receivable to Shell Factors, LTD$.$ Shell retains $\backslash (6\backslash \%\backslash )$ of the amount factored as a reserve or hold back. Shell Factors also charged Summer a $\backslash (5\backslash \%\backslash )$ financing fee $(\backslash (5\backslash \%\backslash )$ of the total factored amount$).$ As a result, only $\backslash (89\backslash \%\backslash )$ of the proceeds are remitted.

i$.$ Prepare the journal entry to record the factoring of $\backslash (\backslash$$ $420,000\backslash )$ of accounts receivable assuming that Summer sold the receivables without recourse.

ii$.$ Prepare the journal entry to record the factoring of $\backslash (\backslash$$ $420,000\backslash )$ of accounts receivable assuming that Summer sold the receivables with recourse and the recourse obligation is estimated to be $\backslash (\backslash$$ $6,300\backslash ).$