Calistoga Produce estimates bad debt expense at 0.40% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $487,000 and $1,540, respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $319,000 and $312,000, respectively, and $1,770 in accounts receivable were written off. Calistoga's accounts receivable at December 31, 2021, are:

Multiple Choice

• $478,230.

• $494,000.

• $485,230.

• $492,230.

Accounts receivable are normally reported at the:

Multiple Choice

• Expected amount to be collected.

• Current value plus accrued interest.

• Present value of future cash receipts.

• Current value less expected collection costs.

Long-term notes receivable issued for noncash assets at an unrealistically low interest rate will be:

Multiple Choice

• Recorded at an amount equal to the future cash flows.

• Recorded at the contract amount.

• Discounted at an imputed interest rate.

• Accounted for on the installment basis.

n deciding whether financing with receivables is a secured borrowing or a sale under IFRS, the critical element is the extent to which:

Multiple Choice

• The transferee has received substantially all the risks and rewards of ownership.

• The age of the receivables transferred differs from the average age of the receivables.

• The transferee relies on assets received from the transferor to maintain operations.

• The transferor of the receivable surrenders control over the assets transferred.

For 2021, Rahal's Auto Parts estimates bad debt expense at 2% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $88,500 and $2,500, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $408,000 and $412,000, respectively, and $2,740 in accounts receivable were written off. Rahal's accounts receivable at December 31, 2021, are:

Multiple Choice

• $92,500.

• $81,760.

• $89,760.

• $84,500.