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The following information comes from the accounts of Posley Company:
Required:
a. There were $180,000 of sales on account during the accounting period. Write-offs of uncollectible accounts were $1,450. 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 receivable has a two year term with a 7 percent interest rate. What amount of interest revenue was recognized during the period? How much cash was collected from interest?
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