The following are independent transactions related to accounts receivable and notes receivable.

1. a. Breanna Corporation, a manufacturer of pet toys, sold equipment for $500,000 on the last day of the financial year. On that date, a note receivable was signed with a 2% interest rate, payable in 6 months and $20,000 collected in cash.

2. b. Leneord Inc. sold goods with a retail value of $2,200,000 on 1 April 20X1 with terms 2/10, n/30. Fifty percent was collected by 31 May 20X1. Leneord Inc. typically does not charge interest on late payment unless the receivable has been outstanding for more than three months. Leneord’s reporting date is 30 June 20X1 and it prepares an indirect method cash flow statement.

3. c. On 1 November 20X2, in exchange for the sale of a boat, Tendin Inc. received an 8-month note receivable from Sonia Lu Inc. and 20% cash up front. The sale is part of Tendin’s current promotion on boats and boating equipment whereby an automatic 10% discount is applied to all sales. Tendin Inc.’s reporting date is 31 December 20X2 and it prepares an indirect method cash flow statement.

4. d. Riley Co. provides bridal party makeup services at a rate of $100 per hour. On 15 November 20X3 it has $15,000 accounts receivable outstanding. Riley Co.’s reporting date is 31 December 20X3 and it prepares a direct method cash flow statement.

5. e. Henlin Incorporated sells to its customers on credit, offering a generous 90-day payment period with no interest. In the current year, Henlin Incorporated was able to recover $7,000 of previously written off receivables. Bad debt expense is $27,000.

Required:

For each item provided, describe the appropriate treatment on the statement of cash flows.