Questions by talon15 - Page 30
Cordova, Inc., reported the following receivables in its December 31, 2020, year-end balance sheet:Current assets:Accounts receivable, net of $45,000 in allowance foruncollectible accounts $ 377,000 Interest receivable 15,000 Notes receivable 350,000 Additional information:The notes receivable account consists of two notes, a $120,000 note and a $230,000 note. The $120,000 note is dated October 31, 2020, with principal and interest payable on October 31, 2021. The $230,000 note is dated March 31, 2020, with principal and 8% interest payable on March 31, 2021.During 2021, sales revenue totaled $2,050,000, $1,910,000 cash was collected from customers, and $34,000 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 gross accounts receivable.Required:1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Cordovas 2021 income statement?2. Calculate the receivables turnover ratio for 2021. (Round your answer to 2 decimal places.)1. Interest revenue Bad debt expense 2. Accounts receivable turnover ratio