Cordova, Inc., reported the following receivables in its December 31, 2015, year-end balance sheet: Current...
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Accounting
Cordova, Inc., reported the following receivables in its December 31, 2015, year-end balance sheet:
Current assets:
Accounts receivable, net of $56,000 in allowance for uncollectible accounts 388,000
Interest receivable 21,500
Notes receivable 450,000
Additional information:
1. The notes receivable account consists of two notes, a $110,000 note and a $340,000 note. The $110,000 note is dated October 31, 2015, with principal and interest payable on October 31, 2016. The $340,000 note is dated March 31, 2015, with principal and 8% interest payable on March 31, 2016.
2. During 2016, sales revenue totaled $2,160,000, $2,020,000 cash was collected from customers, and $45,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 9% of year-end accounts receivable.
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Cordovas 2016 income statement?
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