Problem 7-12 (Algo) Accounts and notes receivable; discounting a note receivable; receivables turnove atio [LO7-5, 7-6, 7-7, 7-8, 7-9] Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current assets: Accounts receivable, net of $39, 000 in allowance for uncollectible accounts Interest receivable Notes receivable $293,000 14,400 410,000 Additional Information: 1. The notes receivable account consists of two notes, a $75,000 note and a $335,000 note. The $75,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $335,000 note is dated June 30, 2021, with principal and 8% interest payable on June 30, 2022. 2. During 2022, sales revenue totaled $1,490,000, $1,355,000 cash was collected from customers, and $37,000 in accounts receivahle were written off AIl sales are made on a credit basis Bad debt exnense is recorded at vear-end by adiusting the
Problem 7-12 (Algo) Accounts and notes receivable; discounting a note receivable; receivables turnove atio [LO7-5, 7-6, 7-7, 7-8, 7-9] Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current assets: Accounts receivable, net of $39, 000 in allowance for uncollectible accounts Interest receivable Notes receivable $293,000 14,400 410,000 Additional Information: 1. The notes receivable account consists of two notes, a $75,000 note and a $335,000 note. The $75,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $335,000 note is dated June 30, 2021, with principal and 8% interest payable on June 30, 2022. 2. During 2022, sales revenue totaled $1,490,000, $1,355,000 cash was collected from customers, and $37,000 in accounts receivahle were written off AIl sales are made on a credit basis Bad debt exnense is recorded at vear-end by adiusting the
Problem 7-12 (Algo) Accounts and notes receivable; discounting a note receivable; receivables turnove atio [LO7-5, 7-6, 7-7, 7-8, 7-9] Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current assets: Accounts receivable, net of $39, 000 in allowance for uncollectible accounts Interest receivable Notes receivable $293,000 14,400 410,000 Additional Information: 1. The notes receivable account consists of two notes, a $75,000 note and a $335,000 note. The $75,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $335,000 note is dated June 30, 2021, with principal and 8% interest payable on June 30, 2022. 2. During 2022, sales revenue totaled $1,490,000, $1,355,000 cash was collected from customers, and $37,000 in accounts receivahle were written off AIl sales are made on a credit basis Bad debt exnense is recorded at vear-end by adiusting the
The notes receivable account consists of two notes, a $75,000 note and a $335,000 note. The $75,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $335,000 note is dated June 30, 2021, with principal and 8% interest payable on June 30, 2022.
During 2022, sales revenue totaled $1,490,000, $1,355,000 cash was collected from customers, and $37,000 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.
On March 31, 2022, the $335,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 10%. Chamberlain accounts for the discounting as a sale
Transcribed Image Text:Problem 7-12 (Algo) Accounts and notes receivable; discounting a note receivable; receivables turnover
ratio [LO7-5, 7-6, 7-7, 7-8, 7-9]
Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet:
Current assets:
Accounts receivable, net of $39,000 in allowance for
uncollectible accounts
$293,000
Interest receivable
Notes receivable
14,400
410,000
Additional Information:
1. The notes receivable account consists of two notes, a $75,000 note and a $335,000 note. The $75,000 note is dated October 31,
2021, with principal and interest payable on October 31, 2022. The $335,000 note is dated June 30, 2021, with principal and 8%
interest payable on June 30, 2022.
2. During 2022, sales revenue totaled $1,490,000, $1,355,000 cash was collected from customers, and $37,000 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, 2022, the $335,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 10%.
Chamberlain accounts for the
ounting as a sale.
Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2022 income
statement?
2. & 3. What amounts will appear in the 2022 year-end balance sheet for accounts receivable and Calculate the receivables turnover
ratio for 2022.
Complete this question by entering your answers in the tabs below.
Req 1
Reg 2 and 3
Not including sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2022
income statement?
Income Statement for 2022
Revenue:
Interest revenue
Expense:
Bad debt expense
Loss on sale of notes receivable
< Req 1
Req 2 and 3 >
Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.
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![Problem 7-12 (Algo) Accounts and notes receivable; discounting a note receivable; receivables turnover
ratio [LO7-5, 7-6, 7-7, 7-8, 7-9]
Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet:
Current assets:
Accounts receivable, net of $39,000 in allowance for
uncollectible accounts
$293,000
Interest receivable
Notes receivable
14,400
410,000
Additional Information:
1. The notes receivable account consists of two notes, a $75,000 note and a $335,000 note. The $75,000 note is dated October 31,
2021, with principal and interest payable on October 31, 2022. The $335,000 note is dated June 30, 2021, with principal and 8%
interest payable on June 30, 2022.
2. During 2022, sales revenue totaled $1,490,000, $1,355,000 cash was collected from customers, and $37,000 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, 2022, the $335,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 10%.
Chamberlain accounts for the
ounting as a sale.
Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2022 income
statement?
2. & 3. What amounts will appear in the 2022 year-end balance sheet for accounts receivable and Calculate the receivables turnover
ratio for 2022.
Complete this question by entering your answers in the tabs below.
Req 1
Reg 2 and 3
Not including sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2022
income statement?
Income Statement for 2022
Revenue:
Interest revenue
Expense:
Bad debt expense
Loss on sale of notes receivable
< Req 1
Req 2 and 3 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb22b1c10-6c01-4bde-b990-42afc72522df%2F30799d6b-5828-4edb-88ef-f755b5589c89%2F3chkroe_processed.png&w=3840&q=75)
