Reference no: EM133189003
Question 1 - Fox Company provided the following information for the current year;
Accounts receivable on January 1 1,200,000
Allowance for bad debts, January 1 200,000
Credit sales 6,000,000
Collections from customers, excluding recovery 4,500,000
Accounts written off (150,000)
Collection of accounts written off in prior year 50,000
Estimated uncollectible per aging of receivables at December 31 280,000
What is the balance of accounts receivable, before allowance for doubtful accounts on December 31?
Question 2 - Fox Company provided the following information for the current year;
Accounts receivable on January 1 1,200,000
Allowance for bad debts, January 1 200,000
Credit sales 6,000,000
Collections from customers, excluding recovery 4,500,000
Accounts written off (150,000)
Collection of accounts written off in prior year 50,000
Estimated uncollectible per aging of receivables at December 31 280,000
How much is the ending balance of allowance for doubtful accounts?
Question 3 - Fox Company provided the following information for the current year;
Accounts receivable on January 1 1,200,000
Allowance for bad debts, January 1 200,000
Credit sales 6,000,000
Collections from customers, excluding recovery 4,500,000
Accounts written off (150,000)
Collection of accounts written off in prior year 50,000
Estimated uncollectible per aging of receivables at December 31 280,000
How much is the Net Realizable Value of Accounts Receivable on December 31?
Question 4 - Jay Company provided the following data for the current year.
Accounts receivable, January 1 500,000
Allowance for Doubtful accounts, January 1 60,000
Recovery 6,000
Credit sales 2,800,000
Sales returns 80,000
Accounts written off 30,000
Collections from customers 2,300,000
Estimated uncollectible accounts at 12/31 per aging 120,000
What is the balance of accounts receivable, before allowance for doubtful accounts on December 31?
Question 5 - Jay Company provided the following data for the current year.
Accounts receivable, January 1 500,000
Allowance for Doubtful accounts, January 1 60,000
Recovery 6,000
Credit sales 2,800,000
Sales returns 80,000
Accounts written off 30,000
Collections from customers 2,300,000
Estimated uncollectible accounts at 12/31 per aging 120,000
How much is the bad debts expense?
Question 6 - Jay Company provided the following data for the current year.
Accounts receivable, January 1 500,000
Allowance for Doubtful accounts, January 1 60,000
Recovery 6,000
Credit sales 2,800,000
Sales returns 80,000
Accounts written off 30,000
Collections from customers 2,300,000
Estimated uncollectible accounts at 12/31 per aging 120,000
What is the amortized cost(NRV) of accounts receivable on December 31?
Question 7 - Mami Company reported the following information at year-end:
Trade accounts receivable 900,000
Allowance for uncollectible accounts (40,000)
Claim against shipper for goods lost in transit in November 60,000
Selling price of unsold goods sent by Mami on consignment at 130% of cost and not included in Miami's ending inventory 330,000
Security deposit on long-term lease of warehouse used for storing some inventories 250,000
What total amount should be reported as trade and other receivables under current assets at year-end?
Question 8 - Elona Company used the net price method of accounting for cash discounts. In one of its transactions on December 26, 2021, the entity sold merchandise with a list price of P2,000,000 to a customer who was given a trade discount of 20%, 10% and 5%. Credit terms were 3/10, n/30.
The goods were shipped FOB destination, freight collect. Total freight charge paid by the customer was P10,000. On December 27,2021, the customer returned damaged goods originally billed at P40,000.
How much is the invoice price, prior to sales return?
Question 9 - Elona Company used the net price method of accounting for cash discounts. In one of its transactions on December 26, 2021, the entity sold merchandise with a list price of P2,000,000 to a customer who was given a trade discount of 20%, 10% and 5%. Credit terms were 3/10, n/30.
The goods were shipped FOB destination, freight collect. Total freight charge paid by the customer was P10,000. On December 27,2021, the customer returned damaged goods originally billed at P40,000.
What is the net realizable value of the accounts receivable on December 31, 2021?
Question 10 - On June 1, 2021, Pock Company sold merchandise with a list price of P3,000,000 to Brad on account. Pock allowed trade discounts of 20% and 10%.
Credit terms were 2/15, n/30 and the sale was made FOB shipping point.
Pock prepaid P150,000 of delivery costs for Brad as an accommodation.
On June 11, 2021, the customer paid in full.
How much should be reported as sales revenue?
Question 11 - On June 1, 2021, Pock Company sold merchandise with a list price of P3,000,000 to Brad on account. Pock allowed trade discounts of 20% and 10%.
Credit terms were 2/15, n/30 and the sale was made FOB shipping point.
Pock prepaid P150,000 of delivery costs for Brad as an accommodation.
On June 11, 2021, the customer paid in full.
How much did Pock receive from Burr on June 11?
Question 12 - Tara Company provided the following information pertaining to accounts receivable at year-end (write-off is already taken into account in the A/R Balances):
|
Days outstanding
|
Amount
|
Uncollectible
|
|
0-60
|
1,500,000
|
5%
|
|
61-120
|
800,000
|
8%
|
|
Over 120
|
900,000
|
10%
|
During the current year, the entity sold 5,000,000 worth of sales, 200,000 of which is due to cash sales. Cash Discounts provided were 300,000, and credit sales return amounted to 80,000. The entity also wrote off P100,000 in accounts receivable and recovered P50,000 that had been written off in prior years. At the beginning of current year, the allowance for doubtful accounts was P150,000.
Under the aging method, what amount of allowance for doubtful accounts should be reported at year-end?
Question 13 - Tara Company provided the following information pertaining to accounts receivable at year-end (write-off is already taken into account in the A/R Balances):
|
Days outstanding
|
Amount
|
Uncollectible
|
|
0-60
|
1,500,000
|
5%
|
|
61-120
|
800,000
|
8%
|
|
Over 120
|
900,000
|
10%
|
During the current year, the entity sold 5,000,000 worth of sales, 200,000 of which is due to cash sales. Cash Discounts provided were 300,000, and credit sales return amounted to 80,000. The entity also wrote off P100,000 in accounts receivable and recovered P50,000 that had been written off in prior years. At the beginning of current year, the allowance for doubtful accounts was P150,000.
Under the aging method, what amount should be recognized as doubtful accounts expense?
Question 14 - Tara Company provided the following information pertaining to accounts receivable at year-end (write-off is already taken into account in the A/R Balances):
|
Days outstanding
|
Amount
|
Uncollectible
|
|
0-60
|
1,500,000
|
5%
|
|
61-120
|
800,000
|
8%
|
|
Over 120
|
900,000
|
10%
|
During the current year, the entity sold 5,000,000 worth of sales, 200,000 of which is due to cash sales. Cash Discounts provided were 300,000, and credit sales return amounted to 80,000. The entity also wrote off P100,000 in accounts receivable and recovered P50,000 that had been written off in prior years. At the beginning of current year, the allowance for doubtful accounts was P150,000.
If bad debts is based on 5% of net credit sales, what amount of allowance for doubtful accounts should be reported at year-end?
Question 15 - Tara Company provided the following information pertaining to accounts receivable at year-end (write-off is already taken into account in the A/R Balances):
|
Days outstanding
|
Amount
|
Uncollectible
|
|
0-60
|
1,500,000
|
5%
|
|
61-120
|
800,000
|
8%
|
|
Over 120
|
900,000
|
10%
|
During the current year, the entity sold 5,000,000 worth of sales, 200,000 of which is due to cash sales. Cash Discounts provided were 300,000, and credit sales return amounted to 80,000. The entity also wrote off P100,000 in accounts receivable and recovered P50,000 that had been written off in prior years. At the beginning of current year, the allowance for doubtful accounts was P150,000.
If bad debts is based on 5% of net credit sales, what amount should be recognized as doubtful accounts expense?
Question 16 - Tara Company provided the following information pertaining to accounts receivable at year-end (write-off is already taken into account in the A/R Balances):
|
Days outstanding
|
Amount
|
Uncollectible
|
|
0-60
|
1,500,000
|
5%
|
|
61-120
|
800,000
|
8%
|
|
Over 120
|
900,000
|
10%
|
During the current year, the entity sold 5,000,000 worth of sales, 200,000 of which is due to cash sales. Cash Discounts provided were 300,000, and credit sales return amounted to 80,000. The entity also wrote off P100,000 in accounts receivable and recovered P50,000 that had been written off in prior years. At the beginning of current year, the allowance for doubtful accounts was P150,000.
If bad debts is based on 10% of Accounts Receivable, what amount of allowance for doubtful accounts should be reported at year-end?
Question 17 - Tara Company provided the following information pertaining to accounts receivable at year-end (write-off is already taken into account in the A/R Balances):
|
Days outstanding
|
Amount
|
Uncollectible
|
|
0-60
|
1,500,000
|
5%
|
|
61-120
|
800,000
|
8%
|
|
Over 120
|
900,000
|
10%
|
During the current year, the entity sold 5,000,000 worth of sales, 200,000 of which is due to cash sales. Cash Discounts provided were 300,000, and credit sales return amounted to 80,000. The entity also wrote off P100,000 in accounts receivable and recovered P50,000 that had been written off in prior years. At the beginning of current year, the allowance for doubtful accounts was P150,000.
If bad debts is based on 10% of Accounts Receivable, what amount should be recognized as doubtful accounts expense?