90.2K

Verified Solution

Link Copied!

Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2018, year-end balance sheet: Current assets: Accounts receivable, net of $34,000 in allowance for uncollectible accounts Interest receivable Notes $268,000 12,500 360,000 receivable Additional Information: 1. The notes receivable account consists of two notes, a $95,000 note and a $265,000 note. The $95,000 note is dated October 31, 2018, with principal and interest payable on October 31, 2019. The $265,000 note is dated June 30, 2018, with principal and 8% interest payable on June 30, 2019. 2. During 2019, sales revenue totaled $1,440,000, $1,330,000 cash was collected from customers, and $32,000 in account:s receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 3. On March 31, 2019, the $265,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 10%. Chamberlain accounts for the discounting as a sale. Required: 1. Not including sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2019 income statement? 2. & 3. What amounts will appear in the 2019 year-end balance sheet for accounts receivable and Calculate the receivables turnover ratio for 2019

Answer & Explanation Solved by verified expert

See Answer