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 Problem 7-12 (Algo) Accounts and notes receivable; discounting a note receivable; receivables turnoverratio [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 foruncollectible accounts$293,000Interest receivableNotes receivable14,400410,000Additional 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 accountsreceivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting theallowance 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 theounting as a sale.Required:1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2022 incomestatement?2. & 3. What amounts will appear in the 2022 year-end balance sheet for accounts receivable and Calculate the receivables turnoverratio for 2022.Complete this question by entering your answers in the tabs below.Req 1Reg 2 and 3Not including sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2022income statement?Income Statement for 2022Revenue:Interest revenueExpense:Bad debt expenseLoss on sale of notes receivable< Req 1Req 2 and 3 >

The income statement shows the net income or loss of the organization for the given period of time.…

Answered: Problem 7-12 (Algo) Accounts and notes…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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

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 >

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