1. Jordan Company uses the allowance method for uncollectible accounts. Jordan Company accepted a $5,000, 12%, 90-day note dated May 16, from Beckam Company in exchange for its past-due account receivable. Make the necessary general journal entries for Jordan Company on May 16 and the August 14 maturity date, assuming that the:
a. Note is honored.
b. Note is dishonored.
2. Morgan had net sales of $310,000 and average accounts receivable, net of $77,500. Its competitor, Stanley, had net sales of $286,700 and average accounts receivable, net of $61,000. Calculate the accounts receivable turnover for both companies. Which company is doing a better job of managing its accounts receivables?