Cordova, Incorporated, reported the following receivables in its December 31, 2023, year-end balance sheet: Current assets: Accounts receivable, net of $46,000 in allowance for uncollectible accounts Interest receivable Notes receivable $ 378,000 15,500 350,000 Additional information: 1. The notes receivable account consists of two notes, a $110,000 note and a $240,000 note. The $110,000 note is dated October 31, 2023, with principal and interest payable on October 31, 2024. The $240,000 note is dated March 31, 2023, with principal and 8% interest payable on March 31, 2024. 2. During 2024, sales revenue totaled $2,060,000, $1,920,000 cash was collected from customers, and $35,000 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 9% of year-end gross accounts receivable. Required: 1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Cordova's 2024 income statement? 2. Calculate the receivables turnover ratio for 2024. Note: Round your answer to 2 decimal places. 1. Interest revenue 1. Bad debt expense 2. Accounts receivable turnover ratio
Cordova, Incorporated, reported the following receivables in its December 31, 2023, year-end balance sheet: Current assets: Accounts receivable, net of $46,000 in allowance for uncollectible accounts Interest receivable Notes receivable $ 378,000 15,500 350,000 Additional information: 1. The notes receivable account consists of two notes, a $110,000 note and a $240,000 note. The $110,000 note is dated October 31, 2023, with principal and interest payable on October 31, 2024. The $240,000 note is dated March 31, 2023, with principal and 8% interest payable on March 31, 2024. 2. During 2024, sales revenue totaled $2,060,000, $1,920,000 cash was collected from customers, and $35,000 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 9% of year-end gross accounts receivable. Required: 1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Cordova's 2024 income statement? 2. Calculate the receivables turnover ratio for 2024. Note: Round your answer to 2 decimal places. 1. Interest revenue 1. Bad debt expense 2. Accounts receivable turnover ratio
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...
Related questions
Question
nkt.5
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,