On April 30th, Future Mart issued a $10,000, 12-month, 4% note to settle an outstanding account...

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On April 30th, Future Mart issued a $10,000, 12-month, 4% note to settle an outstanding account receivable. The interest and the principal will be due on May 1st of next year. Future Mart's year-end is December 31st. Instructions: a) Record the creation of the note receivable on April 30th b) Record the entry for accrued interest on December 31st c) Assume that the customer paid the full amount of interest and principal on May 1st of next year, record the entry to record the payment. PART E: The following chart indicates some key numbers with regards to Future Shops receivables (in thousands) for 2020 through 2022: 2021 65 10 20 20 Accounts Receivable, 2020 45 Gross Allowance for Doubtful Accounts Accounts Receivable Net 35 Credit Sales 200 45 235 2022 100 35 65 450 a) Calculate the receivable turnover ratio and collection period for 2021 and 2022 b) Comment on the state of credit collection at Future Mart at the end of 2022. Has it improved or not? c) If Future Mart includes the credit terms n/60 on their invoices, briefly comment on whether or not customers are respecting Future Mart's credit terms. On April 30th, Future Mart issued a $10,000, 12-month, 4% note to settle an outstanding account receivable. The interest and the principal will be due on May 1st of next year. Future Mart's year-end is December 31st. Instructions: a) Record the creation of the note receivable on April 30th b) Record the entry for accrued interest on December 31st c) Assume that the customer paid the full amount of interest and principal on May 1st of next year, record the entry to record the payment. PART E: The following chart indicates some key numbers with regards to Future Shops receivables (in thousands) for 2020 through 2022: 2021 65 10 20 20 Accounts Receivable, 2020 45 Gross Allowance for Doubtful Accounts Accounts Receivable Net 35 Credit Sales 200 45 235 2022 100 35 65 450 a) Calculate the receivable turnover ratio and collection period for 2021 and 2022 b) Comment on the state of credit collection at Future Mart at the end of 2022. Has it improved or not? c) If Future Mart includes the credit terms n/60 on their invoices, briefly comment on whether or not customers are respecting Future Mart's credit terms.

Answer rating: 100% (QA)

a Record the creation of the note receivable on April 30th On April 30th Future Mart would record the creation of the note receivable The journal entr... View the full answer