Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current assets: Accounts receivable, net of $26,000 in allowance for uncollectible accounts. Interest receivable Notes receivable $228,000 7,850 280,000 Additional Information: 1. The notes receivable account consists of two notes, a $55,000 note and a $225,000 note. The $55,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $225,000 note is dated June 30, 2021, with principal and 6% interest payable on June 30, 2022. 2. During 2022, sales revenue totaled $1,360,000, $1,290,000 cash was collected from customers, and $24,000 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 $225,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 8%. Chamberlain accounts for the discounting 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. Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current assets: Accounts receivable, net of $26,000 in allowance for uncollectible accounts. Interest receivable Notes receivable $228,000 7,850 280,000 Additional Information: 1. The notes receivable account consists of two notes, a $55,000 note and a $225,000 note. The $55,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $225,000 note is dated June 30, 2021, with principal and 6% interest payable on June 30, 2022. 2. During 2022, sales revenue totaled $1,360,000, $1,290,000 cash was collected from customers, and $24,000 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 $225,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 8%. Chamberlain accounts for the discounting 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.
Expert Answer:
Answer rating: 100% (QA)
Answer Page No 0 Income statement for 2022 wii umu Interest revenue 22500CX 6XX 55000XXX 15 2... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2022, Payton Corp. leases a building for three years from Oladipo Finance. At the date of lease inception, the present value of minimum lease payments is properly calculated at...
-
Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2018, year-end balance sheet: Current assets: Accounts receivable, net of $24,000 in allowance for uncollectible...
-
Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2024, year-end balance sheet: Additional Information: 1. The notes receivable account consists of two notes, a...
-
According to Thomson Financial, last year the majority of companies reporting profits had beaten estimates. A sample of 162 companies showed that 114 beat estimates, 29 matched estimates, and 19 fell...
-
Applying fixed costs to products seems to cause all kinds of problems. Why do companies continue to use accounting systems that assign fixed costs to products on a per unit basis?
-
Show that the force acting on a control surface of any arbitrary control volume is equal to the force on a larger regularly shaped control volume enclosing the given body. In order to do this you...
-
The air can hold more water vapor at a lower temperature. (True/False)
-
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of...
-
In multi-site manufacturing operations, what role does TPM play in standardizing maintenance practices and ensuring consistency across different plants or facilities? Discuss the challenges and...
-
Three different analytic studies by three experienced and highly respected groups of researchers yielded three similar but somewhat different results. Do you believe that the results of these studies...
-
What is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period? The interest rate is 12 percent. Use Appendix D for an approximate answer,...
-
What services might a salesperson consider providing in an effort to strengthen their existing partnership with customers?
-
A large industrialized country has recently devalued its currency in an attempt to correct a persistent trade deficit. Which of the following domestic industries is most likely to benefit from the...
-
When dealing with a loyalty issue, it is usually better to avoid direct criticism of the competing firm. Outline four positive ways to overcome loyalty issues with prospects.
-
What is the total profit margin, and what does it measure?
-
Explain why it pays to develop a good relationship with your companys employees as well as your prospects employees, both of whom can influence initial and repeat sales.
-
Miranda works as a sales manager in a large household products company. One afternoon, her supervisor calls her into his office and confides that there's a position opening up in the organization's...
-
Does log 81 (2401) = log 3 (7)? Verify the claim algebraically.
-
The components of postretirement benefit expense are similar to the components of pension expense. In what fundamental way does the service cost component differ between these two expenses?
-
On January 1, 2021, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of...
-
The following Trueblood case is recommended for use with this chapter. The case provides an excellent opportunity for class discussion, group projects, and writing assignments. The case, along with...
-
In a perfectly contestable market, inefficiency does not exist. Explain why.
-
A perfectly competitive market is by definition perfectly contestable, but a perfectly contestable market is not necessarily a perfectly competitive market. Comment on this statement.
-
Why is it important to be clear about how costs can be classified to consider the degree of contestability of a market?
Study smarter with the SolutionInn App