Blackmon Corporation$$s December $31,2018,$ balance sheet disclosed the following information relating to its receivables:

BLACKMON COMPANY

Partial Balance Sheet

December $31,2018$

$1$

Accounts Receivable

$$245,000\mathrm{.}00$

$2$

Less: Allowance for doubtful accounts

$(15,000\mathrm{.}00)$

$3$

$$230,000\mathrm{.}00$

$4$

Notes Receivable$*$

$50,000\mathrm{.}00$

$5$

Total receivables

$$280,000\mathrm{.}00$

$*$The company has a recourse liability of $$700$ related to a note receivable sold to a bank.

During $2019,$ credit sales $($terms$,$ n$/$EOM$)$ totaled $$2,200,000,$ and collections on accounts receivable $($unassigned$)$ amounted to $$1,900,000.$ Uncollectible accounts totaling $$18,000$ from several customers were written off, and a $$1,350$ accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmon$$s receivables occurred during the year:

March $6$ Received payment of $$12,460$ on a note from Renko Company. The payment included interest income of $$460.$

$31$ The March bank statement indicated that the transferred note had been paid at maturity.

May $1$ Accepted a $120-$day, $13\%$ note from Licata Company in exchange for its account receivable of $$4,800.$

$18$ Received a $$6,900,90-$day, $12\%$ note from Eagle Manufacturing Corporation for a credit sale.

June $2$ Sold both the Licata and Eagle notes with recourse at the bank at $14\%.($Assume that Blackmon normally does not sell its notes.$)$ The estimated value of the recourse liability for the Licata and Eagle notes was $$650$ and $$900,$ respectively.

July $1$ Assigned $$140,000$ of accounts receivable to a finance company. Under the terms of the agreement, Blackmon receives $85\%$ of the value of the accounts assigned, minus a service charge of $$5,000,$ and is charged $1\mathrm{.}5\%$ per month on the outstanding loan balance.

$6$ A sales allowance of $$2,500$ on an assigned account is allowed by Blackmon.

$13$ A sales return of $$800$ on an assigned account is granted by Blackmon.

$31$ Collections of $$50,000$ are made on assigned accounts. This amount and one month$$s interest are remitted to the finance company.

August $31$ Assigned accounts of $$60,000$ are collected, and the remainder of the loan is repaid, including interest.

$31$ The August bank statement indicated the Eagle note had been paid.

September $1$ The bank notified Blackmon that Licata defaulted on its note and charges a fee of $$25.$

$4$ Collected the amount due from Licata.

December $31$ Collected interest of $$5,000$ on the outstanding notes receivable.

On December $31,2019,$ an aging of the accounts receivable balance indicated the following:

Age Amount Estimated Percentage Uncollectible

Under $30$ days $$240,4870\mathrm{.}5\%$

$3160$ days $113,4211\mathrm{.}5$

$6190$ days $30,9338\mathrm{.}0$

$91240$ days $17,18535\mathrm{.}0$

Over $240$ days $6,87470\mathrm{.}0$

$$408,900$

Required:

$1.$ Prepare the journal entries to record the preceding receivable transactions during $2019$ and the necessary adjusting entry on December $31,2019.$ Assume a $360-$day year for interest calculations.

$2.$ Prepare the receivables portion of Blackmon$$s December $31,2019,$ balance sheet.

$3.$ Next Level Compute Blackmon$$s accounts receivable turnover in days, assuming a $360-$day business year. What is your evaluation of its collection policies?

$4.$ If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement $2?$