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Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current assets: Accounts receivable, net of $35,000 in allowance for
Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet:
Current assets: | |||
Accounts receivable, net of $35,000 in allowance for uncollectible accounts | $ | 273,000 | |
Interest receivable | 10,100 | ||
Notes receivable | 370,000 | ||
Additional Information:
- The notes receivable account consists of two notes, a $100,000 note and a $270,000 note. The $100,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $270,000 note is dated June 30, 2021, with principal and 6% interest payable on June 30, 2022.
- During 2022, sales revenue totaled $1,450,000, $1,335,000 cash was collected from customers, and $33,000 in accounts 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.
- On March 31, 2022, the $270,000 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: In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlains 2022 income statement? What amounts will appear in the 2022 year-end balance sheet for accounts receivable and Calculate the receivables turnover ratio for 2022.
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