Accounting Interest Receivable question
The following information comes from the accounts of Jersey Company.
Account Title Beginning Balance Ending Balance
Accounts receivable $35,000 $40,400
Allowance for doubtful accounts 1,530 2,840
Notes receivable 54,500 54,500
Interest receivable 1,050 4,756
Required:
a. There were $176,900 in sales on account during the accounting period. Write-offs of uncollectible accounts were $2,110. 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?
I have answered this question -- but the following one has me stumped.
b. The note has an 6.80 percent interest rate and 24 months to maturity. What amount of interest revenue was recognized during the period? How much cash was colected for interest?
