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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 $35,000 in allowance for uncollectible accounts Interest receivable Notes receivable Additional Information: $ 273,000 10,100 370,000 1. 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, 2024, with principal and interest payable on October 31, 2025. The $270,000 note is dated June 30, 2024, with principal and 6% interest payable on June 30, 2025. 2. During 2025, 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. 3. On March 31, 2025, 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: 1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 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.

Chamberlain Enterprises Incorporated reported the following receivables in its December 31, 2024, year-end balance sheet: Current assets: Accounts receivable, net of $35,000 in allowance for uncollectible accounts Interest receivable Notes receivable Additional Information: $ 273,000 10,100 370,000 1. 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, 2024, with principal and interest payable on October 31, 2025. The $270,000 note is dated June 30, 2024, with principal and 6% interest payable on June 30, 2025. 2. During 2025, 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. 3. On March 31, 2025, 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: 1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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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 $35,000 in allowance for uncollectible accounts Interest receivable Notes receivable Additional Information: $ 273,000 10,100 370,000 1. 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, 2024, with principal and interest payable on October 31, 2025. The $270,000 note is dated June 30, 2024, with principal and 6% interest payable on June 30, 2025. 2. During 2025, 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. 3. On March 31, 2025, 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: 1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2025 income statement? Income Statement for 2025 Revenue: Interest revenue Expense: Bad debt expense Req 1 Req 2 and 3 >
Transcribed Image Text:Chamberlain Enterprises Incorporated reported the following receivables in its December 31, 2024, year-end balance sheet: Current assets: Accounts receivable, net of $35,000 in allowance for uncollectible accounts Interest receivable Notes receivable Additional Information: $ 273,000 10,100 370,000 1. 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, 2024, with principal and interest payable on October 31, 2025. The $270,000 note is dated June 30, 2024, with principal and 6% interest payable on June 30, 2025. 2. During 2025, 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. 3. On March 31, 2025, 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: 1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2025 income statement? Income Statement for 2025 Revenue: Interest revenue Expense: Bad debt expense Req 1 Req 2 and 3 >
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