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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
nkt.5
Transcribed Image Text: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
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education