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
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fb671d5-9b0c-415f-9634-86de1931e7eb%2F69b500aa-8192-4301-a007-27f91230471a%2F44liqp2_processed.png&w=3840&q=75)
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
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