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Chamberlain Enterprises Incorporated reported the following receivables in its December 31, 2024, year-end balance sheet: Current assets: Accounts receivable, net of $42,000 in allowance for
Chamberlain Enterprises Incorporated reported the following receivables in its December 31, 2024, year-end balance sheet:
Current assets: | |
---|---|
Accounts receivable, net of $42,000 in allowance for uncollectible accounts | $ 308,000 |
Interest receivable | 15,200 |
Notes receivable | 440,000 |
Additional Information:
- The notes receivable account consists of two notes, a $90,000 note and a $350,000 note. The $90,000 note is dated October 31, 2024, with principal and interest payable on October 31, 2025. The $350,000 note is dated June 30, 2024, with principal and 8% interest payable on June 30, 2025.
- During 2025, sales revenue totaled $1,520,000, $1,370,000 cash was collected from customers, and $40,000 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, 2025, the $350,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 8%. Chamberlain accounts for the discounting as a sale.
Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlains 2025 income statement?
2. & 3. What amounts will appear in the 2025 year-end balance sheet for accounts receivable? Calculate the receivables turnover ratio for 2025.
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