Question

Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2018, year-end balance sheet Current assets: Accounts receivable, net of $36,eee in allowance for uncallectible accounts $278,000 13,600 380,000 Interest receiveble Notes receivable Additional Information 1. The notes receivable account consists of two notes, a $60.000 note and a $320,000 note. The $60,000 note is dated October 31 2018, with principal and interest payable on October 31, 2019. The $320,000 note is dated June 30, 2018, with principal and 8% interest payable on June 30, 2019. 2. During 2019, sales revenue totaled $1,460,000, $1,340,000 cash was collected from customers, and $34,000 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, 2019, the $320,000 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, Not including sales revenue, what revenue and expense amounts related to receivables will appear in Chamiberlain's 2019 income statement? 2 &3. What amounts wil appear in the 2019 year-end balance sheet for accounts recelvable and Caiculate the receivables turnover ratio for 2019 Complete this question by entering your answers in the tabs below. Req 2 and 3 Req 1 Not induding sales revenue, what revenue and expense anounts related to receivables will appear in Chamier lain's 2019 income statement? Revenue: fotereat ravenus Expinse Bad debt expense Loss on sale of nota receivable Reg 2 and3

Answer 1

Anax NO( Revenue $3.20,000 tot al nber Vicvenue 601000 x 0X 12 E 6400 5000 11400 .. Tobal nbeaevenue 1400 Bac debb ezpense Beginning accourt oiccivable 28000 t 36000 314000 Caedib sales 1460.000 Cobten off 34000 Cotcdit collecbions 340,000

Pege NO Ending accoonts receivables 314000 t1460, 000 340/000 34000 400000 accounts oreceivable Ending 400,000 36000 Bcanning allouoance Bad dekexpends (4O0, 000 K la ) + =36000 t 434000 --36000 t 40coo + 34000 $38000 oxibben off $3५००० knding allooance 36000 8000 - $34000 40,000 $40,000 Ending allosanee

NO (3 ace amoont 320.000 Ire nerkto matuy d5600 Malnty value 345600 345600 X10 7. x 2 Discount 7 F8640 Carh proceds 345600-36 40 w $336960 . cas proceeds $336960 380,o00 CamyingValue of nobes receivable 3dco00 x8/. 2 = 320,000 + 19000 339000

Page NO4 ho on ale o notes Yeceivable 339200 336960 2240 . Los on 6ale of notes oreceivabe umann alloware for -Accoun eceivable net $40,000 Un collecbible accoun 400,000 440,000) 360,000 Receivable tnoven ratio Cacdit sales Reccivabe funnoven oio (opering notenccei vable t chorsing not recevable 2 460,000 8000 3 60,000 2 1460,00 O 319000 4.58 4imes Receivable onove oatio