Question
Cordova, Inc., reported the following receivables in its December 31, 2015, year-end balance sheet: Current assets: Accounts receivable, net of $47,000 in allowance for uncollectible
Cordova, Inc., reported the following receivables in its December 31, 2015, year-end balance sheet: |
Current assets: | |
Accounts receivable, net of $47,000 in allowance for uncollectible accounts | $379,000 |
Interest receivable | 19,750 |
Notes receivable | 350,000 |
Additional information: | |
1. | The notes receivable account consists of two notes, a $100,000 note and a $250,000 note. The $100,000 note is dated October 31, 2015, with principal and interest payable on October 31, 2016. The $250,000 note is dated March 31, 2015, with principal and 10% interest payable on March 31, 2016. |
2. | During 2016, sales revenue totaled $2,070,000, $1,930,000 cash was collected from customers, and $36,000 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 8% of year-end accounts receivable. |
Required: | |
1. | In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Cordovas 2016 income statement? |
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