1. On March 1, 2022, Crane Company accepted a two-month, 10%, $9,000 note from Bulldozer, Inc.. in...
Question:
1. On March 1, 2022, Crane Company accepted a two-month, 10%, $9,000 note from Bulldozer, Inc.. in settlement of its open account. The note is due April 30, 2022. Crane appropriately accrued the monthly interest revenue at March 31. Crane's entry to record the collection of the note on April 30, considering the previous accrual of interest, would include a credit to
Cash for $9,000.
Note Receivable for $9,150.
Interest Revenue for $75.
Interest Revenue for $150.
2. Calculations such as the average collection period for accounts receivable give us information about
the number of accounts that are past due at the end of the period.
the number of days on average it takes to collect an accounts receivable balance.
the percentage of receivables that will eventually become uncollectible.
the average receivable balance during the period.
