Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show all work. Trying to learn these concepts Problem 7-12 (Static) Accounts and notes receivable; discounting a note receivable; receivables turnover ratio (LO7-5, 7-6,

image text in transcribedimage text in transcribed

Please show all work. Trying to learn these concepts

Problem 7-12 (Static) Accounts and notes receivable; discounting a note receivable; receivables turnover ratio (LO7-5, 7-6, 7-7, 7-8, 7-9] Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current assets: Accounts receivable, net of $24,000 in allowance for uncollectible accounts Interest receivable Notes receivable $218,000 6,800 260,000 Additional Information: 1. The notes receivable account consists of two notes, a $60,000 note and a $200,000 note. The $60,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $200,000 note is dated June 30, 2021, with principal and 6% interest payable on June 30, 2022. 2. During 2022, sales revenue totaled $1,340,000, $1,280,000 cash was collected from customers, and $22,000 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. 3. On March 31, 2022, the $200,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 8%. Chamberlain accounts for the discounting as a sale. 1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2022 income statement? 2. & 3. What amounts will appear in the 2022 year-end balance sheet for accounts receivable and Calculate the receivables turnover ratio for 2022 Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Not including sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2022 income statement? Income Statement for 2022 Revenue: Interest revenue Expense: Bad debt expense Loss on sale of notes receivable $ 26,000 1,240 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert K. Eskew, Daniel L. Jensen

5th Edition

0070213550, 978-0070213555

More Books

Students also viewed these Accounting questions

Question

Explain the importance of prioritizing training and HRD needs

Answered: 1 week ago