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ACTCY31S1
Problem 1
Under PAS 18
Accounts Receivable ₱ 100,000.00
Sales
Sales
Sales Discount 1,000.00
Allowance for Sale Dscount
(100,000*2%*50%)
Cash ₱ 58,800.00
Allowance for Sale Discount 1,000.00
Collection of 60%
Sales Discount 200.00
Accounts Receivable
Cash ₱ 40,000.00
Collection of 40%
Accounts Receivable
Under PFRS 15
Sales Accounts Receivable ₱ 99,000.00
Sales
Cash 58,800.00
Collection of 60% Sales 600.00
Accounts Receivable
Cash 39,600.00
Collection of 40%
Accounts Receivable
₱ 100,000.00
1,000.00
₱ 60,000.00
₱ 40,000.00
₱ 99,000.00
59,400.00
39,600.00
SEBUC , JERELYN D.
ACTCY31S1
Problem No. 2
Under PAS 18
Requirement no. 1
2017
Dec. 31 Accounts receivable ₱550,000.00
Sales
Requirement No. 2
2017
Dec. 31 No journal entry
2018
Feb. 1 Accounts receivable ₱550,000.00
Sales
Under PFRS 15
Requirement No. 1
2017
Dec. 31 Accounts receivable ₱105,000.00
Sales
2018
Jan. 5 Cash ₱82,500.00
Sales returns 22,500.00
Accounts receivable
Requirement No. 2
2017
Dec. 31 Asset for right to recover product to be returned 100,000
Mechendise inventory
2018
Feb. 1 Account receivable ₱ 150,000.00
Sales
300,000.00
165,000.00
550,000.00
₱550,000.00
300,000.00
₱105,000.00
100,000.00
₱105,000.00
30,000.00
15,000.00
100,000
₱ 150,000.00
100,000.00
Magleo, Angel, Jr. C.
ACTCY31S1
Problem 3
D. Sales 40,000.00
Accounts Receivable 40,000.00
E. Sales 100,000.00
Accounts Receivable 100,000.00
Inventory 56,000.00
Cost of goods sold 56,000.00
Problem 4
Problem 5
Problem 6
Requirement no. 1
Expected Cash Discount
Percentage of discount
Total
Expected percentage discount
Accounts receivable 12/31
Requirement no. 2
Accounts receivable 12/31
Bad debt rate 40,000 1,000,000
Allowance for doubtful accounts 12/31/19
Requirement no. 3
Accounts receivable 12/31
Less: Allowance for doubtful Accounts
Allowance for sales discounts
Net realizable value 12/31/19
Requirement no. 4
Allowance for doubtful accounts 12/31/19
Add: Accounts written off
Total
Less: Allow. For doubtful accounts 12/31/18
Bad debt recoveries
Doubtful Account expense 12/31/2019
₱ 6,000.00
2%
300,000.00
10%
₱ 3,000,000.00
₱ 3,000,000.00
1.5 0.06
₱ 180,000.00
₱ 3,000,000.00
₱ 180,000.00
6,000 186,000.00
₱ 2,814,000.00
₱ 180,000.00
44,000.00
224,000.00
₱ 40,000.00
3,000.00 43,000.00
₱ 181,000.00
Magleo, Angel, Jr. C.
ACTCY31S1
Problem 7
Requirement no. 1
2018
Requirement no. 2
Sales
Rate for Doubtful account
Total
Add: Changes in Allow. For doubtful acc.
Doubtful account for 2018
Requirement no. 3
Doubtful accounts - Beginning
Add: Accrual during the year
Recoveries
Total
Less: Write-off
Total changes in allowance for doubtful Accounts
₱ 18,000,000.00
2%
360,000.00
187,600.00
₱ 547,600.00
₱ 260,000.00
360,000.00
30,000.00
650,000.00
180,000.00
₱ 470,000.00
₱ 537,600.00
120,000.00
470,000.00
₱ 187,600.00
Magleo, Angel, Jr. C.
ACTCY31S1
Problem 8
Requirement 1
Present value of principal ₱ 2,000,000.00 0.7118 ₱ 1,423,600.00
Add: Present value of interest payments 480,360.00
Total PV/SP 2,000,000 10% 2.4018 1,903,960.00
Less Carrying amount of machinery
Cost 1,000,000.00
Less Acc. Depreciation 150,000.00 850,000.00
Gain on sale ₱ 1,053,960.00
Requirement 2
Total Present value / Selling price 1,903,960
Interest rate 12%
Interest income ₱ 228,475
Requirement 3
Interest income ₱ 228,475.00
Less: Interest collection 200,000.00
Discount amortization 28,475.00
Requirement 4
Current portion of Note ₱ -
Requirement 5
Non-current portion of Note ₱ 1,932,435.00