Abbot Safe & Lock
The following information was obtained from the company's records for Year 1:
$\begin{array}{lr}
\text { Credit sales during the year } & \$ 3,200,000 \
\text { Accounts receivable-December 31, Year 1 } & 325,000 \
\text { Allowance for doubtful accounts-December 31, Year 1 } & 35,000 \
\text { Bad debt expense for the year } & 20,000
\end{array}$

-Refer to the figure Art Shoes.At the maturity date,the customer pays for the note and interest.The company made the proper adjustment at the end of December for interest.What is the effect of recognizing the transaction on the maturity date?

Question

Abbot Safe & Lock
The following information was obtained from the company's records for Year 1:
$\begin{array}{lr}
\text { Credit sales during the year } & \$ 3,200,000 \
\text { Accounts receivable-December 31, Year 1 } & 325,000 \
\text { Allowance for doubtful accounts-December 31, Year 1 } & 35,000 \
\text { Bad debt expense for the year } & 20,000
\end{array}$
 
-Refer to the figure Art Shoes.At the maturity date,the customer pays for the note and interest.The company made the proper adjustment at the end of December for interest.What is the effect of recognizing the transaction on the maturity date?

Quizplus · Accepted Answer

On the maturity date, the notes receivable is settled, leading to a decrease in notes receivable as the customer pays off the note.

Abbot Safe & Lock the Following Information Was Obtained from the Company's

Abbot Safe & Lock
the Following Information Was Obtained from the Company's