1 Category Balance Rate Amount Uncollectible

Current 3,500,000.00 0.50% 17,500.00

1 to 30 days past due 2,000,000.00 2% 40,000.00
31 to 60 days past due 1,200,000.00 5% 60,000.00
61 to 90 days past due 1,000,000.00 8% 80,000.00
91 to 120 days past due 800,000.00 15% 120,000.00
121 to 180 days past due 400,000.00 30% 120,000.00
181 to 360 days 200,000.00 50% 100,000.00
More than 360 days 100,000.00 90% 90,000.00
Allowance for Doubtful Accounts 9,200,000.00 627,500.00

2 Beginning Balance 80,000.00

Bad Debts Expense 547,500.00
Ending Balance 627,500.00

3 Gross Account Receivable 9,200,000.00

Less: Ending allowance for Doubtful accounts 627,500.00
Net Realizable value 8,572,500.00
 1

PV factor of 1 for 5 years 0.5674268558

PV factor of annuity for 5 years 3.6047762

3
Present value of the principal 6,809,122.27
(12,000,000 x 0.56742686)
Present value of the interest 4,325,731.44
(12000000*10)
(1,200,000 * 3.6047762)
Initial amount of the note 11,134,853.71

Date Interest Income Cash receipt Amortization Carrying Amount

1-Jan-20 11,134,853.71
12/31/2020 1,336,182.45 1,200,000.00 136,182.45 11,271,036.15
12/31/2021 1,352,524.34 1,200,000.00 152,524.34 11,423,560.49
12/31/2022 1,370,827.26 1,200,000.00 170,827.26 11,594,387.75
12/31/2023 1,391,326.53 1,200,000.00 191,326.53 11,785,714.28
12/31/2024 1,414,285.71 1,200,000.00 214,285.71 12,000,000.00

Date Interest Income

1/1/2020
12/31/2020 1,336,182.45
12/31/2021 1,352,524.34
12/31/2022 1,370,827.26
12/31/2023 1,391,326.53
12/31/2024 1,414,285.71
12,000,000.00 0.567427 6,809,122.27
120,000.00 3.604776 432,573.14
 2020
Credit Sales 22,500,000.00
1 Average Accounts Receivable 1,250,000.00
2019 1,200,000.00
2020 1,300,000.00
2,500,000.00
2
1,250,000.00
Account Receivable Turnover 18

2 Days 365
Accounts Receivable Turnover 18
Average Collection Period 20
 2021
21,600,000.00
1,500,000.00 2020 1,300,000.00
2021 1,700,000.00
3,000,000.00
2
1,500,000.00

14.4

365
14.4
25