PROBLEM 1

I. Allowance for Doubtful Accounts, beg. P 143,000

Provision (P 15M x 2%) 300, 000
Write- off(P 140 000 + 120 000) (260, 000)
Recoveiy ofpreviously written off 43. 000
Balanc€, before adjustment L--226J0O0

2.
Balan.elRatelemount
November - December 2010 2,160,000 $,24C
luly - October 2010 1,300,000 7A% 130,00c
840,000 25% 210,000
Priortolanuary l" 2010
{300,000 - 120,000 w te off) 130,000 10% 126 000
Required allowance balance, Dec. 31, 2010 509,200
Le$: Allowance balance before adjustment
226,W0
_____ 31?!9

Jourial entry:
Bad debts expense 283,200
Allowance for bad delrts 283,200
(P s09 200 - 226 000)

3. Provision P 300,000
Adjustmeni 283.200
Total Bad debts expense P 583-A0
4. Balance ofaccounts receivable (P 4 600 000
- 120 000) P 4,480, 000
Allowance for bad debts ( 509.200)
Net Realizable value Pl,9ZLl0r0
5.D
PROBLI]M 2

l
Required

1 - X5 days 64% 2,880,000 1% 28,800

11- 30 days 1a% 810,000 25% 20,250
Past due 31- 60 d6ys a% 360,000 18,000
Past due 61- 120 days 225,OOO 20% 45,000
Pan due 121- 1aO days 3% i35,000 35% 47,250
Past due over 180 days 2% 45,000 ao% 36_dr)
Required allowance
____l9E9q
 2. Adjusted balance ofAllowance for Doubtful Accounts P 195,300
Balance ofAllowance:
ADA, beg P 81,900
Provision (24M*4%) 960, 000
write off ( 868, 500)
Additional write off (4,50q000't2%*50o/o) ( 45.000) r 128- 400r
AdjustmeDt for Allowance P ____66.100
PROBLEM 3

1. Control account balance P 1, 270, 000

Subsidiary Ledger balance ( 1.260. 000)
Unlocated Difference P-10J0q)
Joumal Entry:

Sales 10,000
Accounts Receiyable 10,000
2. Unde. I month P 540,000
I to6 months (552,000-21,000) 531,000
Over 6 months (228,000-72,000)
Adjust€d accorrnts receiyalrle PL22tum0
3. Aging of accounts rec€ivablei
Under 1 month (540,000*1%) P 5,400
One to 6 months (531,000*2%) 10, 620
Over 6 months (3 6000* 50o/o,\ + {120,000* 1O%) 30.000
Required Allowance for bad debts L4nlJzA
4. Journal entry:

Bad debts expense 40,020

Allowance for doubtft accoEnts 40, a0

Required allowance for bad debs P 46,020

Write off of rmcollectible accounts 12,000
Recorded Allowance for bad debts (78^000)
Net adjustment L- __4UD0
.PROBLEM 4

1. Accounts Receivable under "6l 90 days,, category:

MOA Corp. ( lnvoice d are 10/25/20t0 ) P 10,600
Centerpoinr Corp. ( Invoice date 10/9/2010 ) 22.000 P 32..6100

Accounts Receivable under "9l - 120 days,, category:

Mega Corp. ( Invoice d ate 9/27 /2010 ) P 12,000
Fairview Corp. ( Invoice date 9/12/2010 ) t7. 400 P.- 4.4N
1 Aging of Accounts Receivables:
0 - 30 days [ ( P 14,000 + 19, 200+20,000 + 12,400) x 1%1 P 6s6
31 60 days [ ( p 21, 180 + 23, t4O) x r5% I 665
61 - 90 days (P 32, 600 x3r/o ) 978
91 - l2C days ( P 29, 400 x 10yo ) 2,940
Over I20 days ( P 8, 920 x 50% ) 4. 460
Required bal&[ce of AllowaDce for Bad Debts P I 6qS

4. EnFy:

Bad Debts Expense 15, 199

Allowance for Bad Debts
(5,500rr,699)
P 15, r99

5. TotalAccountsReceivables
( P 65, 600 + 44, 32A + 32, 600 + 29 , 1OO + 8, 920 P 180,840
)
Allowance for Bad Debts ( 9.699 \
Net Realizable Value of Accounts Receivabl€s
B_17L"!41
PROBIIM 5

1. Unadjusted balance ofAccounts Receivable P 558,600

Uncollectible accolmls ( P6, 300 + 4, 110 ) ( 10,410 )
Credit balance in Accounts Rec€ivable 7.26u
Adjusted baleEce of Accounts Receivable L555.4s0
2. Aging ofAccounts Receivables:
60 days and under ( p 258, 513 x 1% ) P 2,58s
6l to 90 days [ ( p 204, 73s + 7,260 ) x3%] 6,360
91 to 120 days [ ( p 59, Bt6 - 4,110) x 6%] 3,347
Over 120 days [ ( P 35, 466 - 6,300 ) x25o/r ] '1.291
Adjusted balance ofAllowarce for Bad I)ebts P p.5e3
3. Allowance for Bad Debrs, Dec. 31,2010 P 19,583
Write-offofAccounts Receivables ( p 4, l lO + 6, 300 ) 10,410
Allowance for Bad Debts, Jan. 1, 2010 ( 13. 125 )
Doubtful Accounts Expense, 2010 P 16.t68
 4. Recorded Doubtful Accounts Expense(P27,930-4,110) p 23,820
Corect Doubtful Accounts Expense ( 16. 868 )
Adjustment to Doubtful Accounts ExpeNe ( credit ) p 6.952
PROBLEM 6

1 Othertrade accounts receivable unassiened 750,000.00

Trade accounts receivable - assigned 375,000.00
Trade installment receivabledue 1-18 months, net of u nea rned flnance charge ofp30,0OO 300,000.00
Trade receivables from offi.ers due currently 22,500.00
Trade accounts on which post dated checks are held 75,000.00
Trade accounts receivable L,522,5OO.OO

2 Trade accounts receivable (1) 7,s22,500.O0

Advance paymentsto creditorss on PO 150,00c.00
hlerei rereivables on bonds 1s0,000.00
Subscriptions receivable, due i.30 days 825,000.00
Current trade and other receivables
-3447_,5oo.oo
3 Advancesto affiliated companies 375,000.00

PROBLf,M 7

AR, unadjusted 1,300,000.00

Adjustments:
Goods shipped io customer) 12.30.10, FOB shipping point 50,000.00
Customer's NSF check returned by the bank on 12.29.10 5.000.00
AR, adjusted 1,355,000.00

2 AR, adjusted 1,355,000.00

Rate 1.50%
Required balance ofADA 20,325.00

3 ADA, endine 20,325.OO

ADA, beginning (debit balance) 8,000.00
Provision for bad debts 28,325,00
PROBLEM 8

1 Trade receivables (current) 3,440,000.00

Past due trade accounts 640,000.00
Notes receivable dishonored 240,000.00
Consigned goods already sold (p160,000*90%) 144,00C.00
Adjusted trade receivables 4,464,OO0.OO

Adjusted trade receivables 4,464,000.oo

Less due from consignee 144,000.00
Easis ofallowance for bad debts 4,320,000.00
Rate
Required balance of bad debts 215,000.o0

3 Required balance of bad debts 216,000.00

Add write off of bad debts 128,000.00
Less aliowance for bad debts, before adjustments 80,000.00
Bad debts expense 26+000.00

PROBLEM 9

L AR, beg
480,000.00
Add: Sales on account 2,400,ooo.oo
Recovery ofaccounts previously written off 4,400.oo 2,404,aoo.oo
less: Collections,includingrecovery 2,560,000.00
Sales dis€ount (2%) 28,800.00
Sales discount (1%) 8,000.00
Accounts written off 17,600.00 2,614,400.00
AR, enc!
270,400.o0

2 AR, end
270 400.aa
Rate
5%
Required allowance for bad debts
13,520.00
Add accounts written off
17,600.00
less: Recovery ofaccounts previously written off
4800.o0
ADA, beg 19,200.00 24,000.00
Provision for bad debts
,-,l2o.oo