The following information comes from the accounts of James Company on December 31: Beginning Balance $27,800 1,650 Ending Balance $37,500 2,740 55,000 4,125 55,000 890 Account Title Accounts receivable Allowance for doubtful accounts Note receivable Interest receivable Required a. There were $177,800 of sales on account during the accounting period. Write-offs of uncollectible accounts were $1,800. What was the amount of cash collected from accounts receivable? What amount of uncollectible accounts expense was reported on the income statement? What was the net realizable value of receivables at the end of the accounting period? b. The note receivable has an annual interest rate of 3.75 percent and a two-year term (7.50 percent interest rate over the life of the note). What amount of interest revenue was recognized during the period? How much cash was collected from interest? (Round your answers to the nearest dollar amount.) Complete this question by entering your answers in the tabs below. Required A Required B The note receivable has an annual interest rate of 3.75 percent and a two-year term (7.50 percent interest rate over the life of the note). What amount of interest revenue was recognized during the period? How much cash was collected from interest? (Round your answers to the nearest dollar amount.) Interest revenue recognized for the year Cash received for interest < Required A Required B
The following information comes from the accounts of James Company on December 31: Beginning Balance $27,800 1,650 Ending Balance $37,500 2,740 55,000 4,125 55,000 890 Account Title Accounts receivable Allowance for doubtful accounts Note receivable Interest receivable Required a. There were $177,800 of sales on account during the accounting period. Write-offs of uncollectible accounts were $1,800. What was the amount of cash collected from accounts receivable? What amount of uncollectible accounts expense was reported on the income statement? What was the net realizable value of receivables at the end of the accounting period? b. The note receivable has an annual interest rate of 3.75 percent and a two-year term (7.50 percent interest rate over the life of the note). What amount of interest revenue was recognized during the period? How much cash was collected from interest? (Round your answers to the nearest dollar amount.) Complete this question by entering your answers in the tabs below. Required A Required B The note receivable has an annual interest rate of 3.75 percent and a two-year term (7.50 percent interest rate over the life of the note). What amount of interest revenue was recognized during the period? How much cash was collected from interest? (Round your answers to the nearest dollar amount.) Interest revenue recognized for the year Cash received for interest < Required A Required B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Part B only
Transcribed Image Text:The following information comes from the accounts of James Company on December 31:
Beginning Balance
$27,800
1,650
55,000
890
Ending Balance
$37,500
2,740
55,000
4,125
Account Title
Accounts receivable
Allowance for doubtful accounts
Note receivable
Interest receivable
Required
a. There were $177,800 of sales on account during the accounting period. Write-offs of uncollectible accounts were
$1,800. What was the amount of cash collected from accounts receivable? What amount of uncollectible accounts
expense was reported on the income statement? What was the net realizable value of receivables at the end of
the accounting period?
b. The note receivable has an annual interest rate of 3.75 percent and a two-year term (7.50 percent interest rate
over the life of the note). What amount of interest revenue was recognized during the period? How much cash was
collected from interest? (Round your answers to the nearest dollar amount.)
Complete this question by entering your answers in the tabs below.
Required A Required B
The note receivable has an annual interest rate of 3.75 percent and a two-year term (7.50 percent interest rate over the life of
the note). What amount of interest revenue was recognized during the period? How much cash was collected from
interest? (Round your answers to the nearest dollar amount.)
Interest revenue recognized for the year
Cash received for interest
< Required A
Required B
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