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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
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?
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