The following information comes from the accounts of Jersey Company.
|
Account Title
|
Beginning Balance
|
Ending Balance
|
|
Accounts receivable
|
$30,000
|
$34,000
|
|
Allowance for doubtful accounts
|
1,800
|
1,700
|
|
Notes receivable
|
40,000
|
40,000
|
|
Interest receivable
|
1,200
|
3,600
|
Required
a. There were $170,000 in sales on account during the accounting period. Write-offs of uncollectible accounts were $1,400. 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 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?