Anth Company has significant amounts of trade accounts receivable. Anth uses the allowance method to estimate bad debts. During the year, some specific accounts were written off as uncollectible, and some that were previously written off as uncollectible were collected. Anth also has some interest-bearing notes receivable for which the face amount plus interest as the prevailing rate of interest is due at maturity. The notes were received on July 1, 2013, and are due on June 30, 2014.

A.) How should Anth account for the collection of the specific accounts previously written off as uncollectible?

B.) How should Anth report the effects of the interest-bearing notes receivable on its December 31, 2013, balance sheet and its income statement for the year ended December 31, 2014? Why?