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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