Question

O'Tole Co. reports assigned accounts receivable of $190,000 that relate to an unpaid note payable of $75,000. Correct balance sheet disclosure is Current assets: Accounts receivable assigned $190,000 Less: Note payable (75,000). Net realizable receivable assigned $115,000 Current assets: Net realizable receivable assigned $115,000 Current liabilities: Note payable $75,000 Less: Accounts receivable assigned (75,000). $-0- Current assets: Equity in accounts receivable $115,000 assigned Current assets: Accounts receivable assigned $190,000 Current liabilities: Note payable $75,000
Please show your work, and thank you for your help.

Answer 1

Answer 1.	Current Assets
	Accounts receivable assigned	$        190,000
	Less: Note payable	$        (75,000)
	Net realizable receivable assigned		$        265,000
Answer 2.	Net realizable value of receivable	$1,065,900
	Time outstanding	Dollar Value	Estimated Uncollectible %	Estimated Uncollectible (Amount)
	a	b	c	d=b*c
	< 30 days old	660000	1.00%	$6,600
	30 to 60 days old	330000	5.00%	$16,500
	> 60 days old	110000	10.00%	$11,000
	Total Estimated Amount of Uncollectible at the end			$34,100
	Calculation of net realizable value of receivable at the end
	Accounts receivable at the end			1100000
	Less: Amount of allowances for uncollectible			$34,100
	Net realizable value of receivable			$1,065,900