The following information comes from the accounts of Sawyer Company: Account Tit
ID: 2487286 • Letter: T
Question
The following information comes from the accounts of Sawyer Company: Account Title Beginning Balance Ending Balance Accounts Receivable $ 25,100 $ 38,100 Allowance for Doubtful Accounts 1,900 2,430 Notes Receivable 47,400 47,400 Interest Receivable 1,100 4,300 Required a. There were $178,000 in 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 has a 6.75 percent interest rate and 24 months to maturity. What amount of interest revenue was recognized during the period? How much cash was collected for interest? (Round your final answers to nearest whole dollar amount.)
Explanation / Answer
Account titile Beginning balance Ending balance Accounts receivables 25,100 38,100 Allowance for doubtful debt 1,900 2,430 Notes receivables 47,400 47,400 Sales 178,000 Uncollectibe debt 1,800 Cash collected Sales 178,000 Add Beginning balance 25,100 Less Ending balance 38,100 Less Uncollectibe debt 1,800 Cash collected 163,200 Uncollectible account expenses 1,800 Net realisable value Ending balance 38,100 Less Allowance for doubtful debt 2,430 Net realisable value = 35,670 Interest @ 6.75 % on 47,400 3199.5 Cash collected as interest is zero The interest would be paid on maturity
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