Reference no: EM133149640
Questions -
Q1. On January 1, 2021, England Company sold merchandise on account with a list price of P250,000.
Related data of the said sale:
Trade discount 5%
Terms of payment 3/10, 2/15, n/30
The entity paid on January 15, 2021.
Under the Net method, what is the amount of sales discount forfeited?
Q2. Rhode Island Company related data are:
Accounts receivable, January 1 P 215,700
Credit sales 2,350,000
Collections from customers, excluding recovery 1,975,000
Accounts are written off 31,500
Collection of accounts written off in the prior year, customer credit was not reestablished 5,000
Estimated uncollectible receivables per aging at December 31 48,500
How much are the Accounts receivable at NRV?
Q3. Chile Company provided the following data:
Accounts receivable - January 1 P 350,000
Allowance for doubtful accounts - January 1 38,700
Collection during the year (excluding recovery) 3,500,000
Net Credit sales 3,750,000
Accounts written-off 25,900
Recovery of accounts written off 9,500
Allowance for doubtful accounts based on 1% of net credit sales.
How much is the NRV of the Accounts receivable on December 31?
Q4. Curacao Company provided the following data:
Accounts receivable - January 1 P 312,500
Allowance for doubtful accounts - January 1 12,800
Collection during the year (excluding recovery) 2,725,000
Credit sales 2,950,000
Accounts written off 10,000
Recovery of accounts written off 5,000
Allowance for doubtful accounts is based on 2% of Accounts receivable, ending
How much are the Accounts receivable at NRV on December 31?
Q5. Panama Company is a dealer of equipment.
On January 1, 2021, the entity sold equipment in exchange for a noninterest-bearing note requiring 4 annual payments of P150,000.
The first payment was made on December 31, 2021.
The market rate for a similar note was 9%.
The entity used 2 decimal places for the PV factor.
How much is the carrying amount of the note receivable on December 31, 2021?
Q6. Paraguay Company is a dealer of equipment.
On January 1, 2021, the entity sold equipment in exchange for a noninterest-bearing note requiring payments of P150,000 due on December 31, 2022, and a down payment of P150,000
The market rate for a similar note was 11%.
The entity used 2 decimal places for the PV factor.
How much is the present value of the note on December 31, 2021?