ceivable to Duff Corp. on October 1, 2014. Control was surrederd by Scarbrough.

Duff accepted
D. P377,260

28. Which of the following statements is correct?

A. Rich should record an asset of P8,000 for the recourse obligation.

B. Taylored should record a liability and corresponding loss of 12,000 related to the
recourse obligation.
A. P42,74030. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on
October 1, 2014. Control was surrederd by Scarbrough. Duff accepted the receivables
subject to recourse for nonpayment. Duff assessed a fee of 3% and retains a holdback
equal to 5% of the accounts receivable. In addition, Duff charged 15% interest computed
on a weighted-average time to maturity of the receivables of fifty-four days. The fair
value of the recourse obligation is P9,000. Scarbrough P8,000
P34,740

28. Which of the following statements is correct?

C. Rich should record an asset of P8,000 for the recourse obligation.

D. Taylored should record a liability and corresponding loss of 12,000 related to the
recourse obligation.
A. P42,74030. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on
October 1, 2014. Control was surrederd by Scarbrough. Duff accepted the receivables
subject to recourse for nonpayment. Duff assessed a fee of 3% and retains a holdback
equal to 5% of the accounts receivable. In addition, Duff charged 15% interest computed
on a weighted-average time to maturity
B. P42,740
C. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.
Required:
a) Prepare journal entries on
28. Which of the following statements is correct?

E. Rich should record an asset of P8,000 for the recourse obligation.

F. Taylored should record a liability and corresponding loss of 12,000 related to the
recourse obligation.
B. P42,74030. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on
October 1, 2014. Control was surrederd by Scarbrough. Duff accepted the receivables
subject to recourse for nonpayment. Duff assessed a fee of 3% and retains a holdback
equal to 5% of the accounts receivable. In addition, Duff charged 15% interest computed
on a weighted-average time to maturity of the receivables of fifty-four days. The fair
value of the recourse obligation is P9,000. Scarbrough P8,000
D. P34,740
E. P42,740
F. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

A. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

B. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough P8,000
C. P34,740
D. P42,740
E. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

F. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

A. P529,685
 B. P538,685
C. P547,685
D. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December 3, 2014.
Control was surrendered by Synthia. Thomas accepted27. Taylore
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

G. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough P8,000
H. P34,740
I. P42,740
J. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

K. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

E. P529,685
F. P538,685
G. P547,685
H. P556,685

L. 31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December 3,
2014. Control was surrendered by Synthia. Thomas accepted27. Taylore

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

I. P529,685
J. P538,685
K. P547,685
L. P556,685

G. 31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December 3,
2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and record
cash of,
H. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

M. P8,000
N. P34,740
O. P42,740
P. P14,740
due from Chester Company.
Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

Q. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

M. P529,685
N. P538,685
O. P547,685
P. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
Q.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

I.
A. P9,000 received by Chester On June 8 from John Booth Transpo
J. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

R. P8,000
S. P34,740
T. P42,740
U. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

K. an asset of P8,000 for the recourse obligation.

L. Taylored should record a liability and corresponding loss of 12,000 related to the
recourse obligation.
M. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
N. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

V. P8,000
W. P34,740
X. P42,740
Y. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.
Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

Z. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

R. P529,685
S. P538,685
T. P547,685
U. P556,685

O. 31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December 3,
2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and record
cash of,
P. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

AA. P8,000
BB. P34,740
CC. P42,740
DD. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.
Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

EE. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

V. P529,685
W. P538,685
X. P547,685
Y. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
Z.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

Q.
A. P9,000 received by Chester On June 8 from John Booth Transpo
R. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.
29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

FF. P8,000
GG. P34,740
HH. P42,740
II. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

S. an asset of P8,000 for the recourse obligation.

T. Taylored should record a liability and corresponding loss of 12,000 related to the
recourse obligation.
U. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
V. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

JJ. P8,000
KK. P34,740
LL.P42,740
MM. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740
 NN. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

AA. P529,685
BB. P538,685
CC. P547,685
DD. P556,685

W. 31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December 3,
2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and record
cash of,
X. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

OO. P8,000
PP. P34,740
QQ. P42,740
RR. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

SS. P14,740
30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

EE.P529,685
FF.P538,685
GG. P547,685
HH. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
II.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

Y.
A. P9,000 received by Chester On June 8 from John Booth Transpo
Z. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

TT.P8,000
UU. P34,740
VV. P42,740
WW. P14,740
due from Chester Company.
Required:
a) Prepare journal entries on

AA. an asset of P8,000 for the recourse obligation.

BB. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
CC. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
DD. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

XX. P8,000
YY. P34,740
ZZ.P42,740
AAA. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

BBB. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of
 JJ. P529,685
KK. P538,685
LL.P547,685
MM. P556,685

EE. 31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December 3,
2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and record
cash of,
FF. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

CCC. P8,000
DDD. P34,740
EEE. P42,740
FFF. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

GGG. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

NN. P529,685
 OO. P538,685
PP. P547,685
QQ. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
RR.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

GG.
A. P9,000 received by Chester On June 8 from John Booth Transpo
HH. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

HHH. P8,000
III. P34,740
JJJ.P42,740
KKK. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

II. an asset of P8,000 for the recourse obligation.

JJ. Taylored should record a liability and corresponding loss of 12,000 related to the
recourse obligation.
KK. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
 LL.No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

LLL. P8,000
MMM. P34,740
NNN. P42,740
OOO. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

PPP. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

SS. P529,685
TT. P538,685
UU. P547,685
VV. P556,685

MM. 31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on
December 3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will
receive and record cash of,
 NN. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

QQQ. P8,000
RRR. P34,740
SSS. P42,740
TTT. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

UUU. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

WW. P529,685
XX. P538,685
YY. P547,685
ZZ.P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,
A. P385, 260
AAA.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

OO.
A. P9,000 received by Chester On June 8 from John Booth Transpo
PP. No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

VVV. P8,000
WWW. P34,740
XXX. P42,740
YYY. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

QQ. an asset of P8,000 for the recourse obligation.

RR. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
SS. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
TT.No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

ZZZ. P8,000
AAAA. P34,740
BBBB. P42,740
CCCC. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

DDDD. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

BBB. P529,685
CCC. P538,685
DDD. P547,685
EEE. P556,685

UU. 31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on
December 3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will
receive and record cash of,
VV. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

EEEE. P8,000
FFFF. P34,740
GGGG. P42,740
HHHH. P14,740
due from Chester Company.
Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

IIII. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

FFF. P529,685
GGG. P538,685
HHH. P547,685
III. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
JJJ.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

WW.
A. P9,000 received by Chester On June 8 from John Booth Transpo
XX. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

JJJJ. P8,000
KKKK. P34,740
LLLL. P42,740
MMMM. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

NNNN. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

KKK. P529,685
LLL. P538,685
MMM. P547,685
NNN. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
OOO.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

YY.
A. P9,000 received by Chester On June 8 from John Booth Transpo
ZZ.No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

OOOO. P8,000
PPPP. P34,740
QQQQ. P42,740
RRRR. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

SSSS. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

PPP. P529,685
QQQ. P538,685
RRR. P547,685
SSS. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
TTT.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?
 AAA.
A. P9,000 received by Chester On June 8 from John Booth Transpo
BBB. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

TTTT. P8,000
UUUU. P34,740
VVVV. P42,740
WWWW. P14,740
due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014? P42,740

XXXX. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

UUU. P529,685
VVV. P538,685
WWW. P547,685
XXX. P556,685
31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
YYY.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transpo

A. P385, 260
ZZZ.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible received by Chester On June 8
from John Booth Transport Service for the freight cost. On June 12, the company received a
check for the balance due from Chester Company.
Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

CCC. Rich should record an asset of P8,000 for the recourse obligation.
DDD. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
EEE. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
FFF. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

YYYY. P8,000
ZZZZ. P34,740
AAAAA. P42,740
BBBBB. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

AAAA. P529,685
BBBB. P538,685
CCCC. P547,685
DDDD. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
EEEE.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John estimating uncollectible accounts that
emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

GGG. Rich should record an asset of P8,000 for the recourse obligation.
HHH. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
 III. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
JJJ.No entry for the recourse obligation should be made by Taylored or Rich until the debtor
fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

CCCCC. P8,000
DDDDD. P34,740
EEEEE. P42,740
FFFFF. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

FFFF. P529,685
GGGG. P538,685
HHHH. P547,685
IIII. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
JJJJ.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?
A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

company received a check for the balance due from Chester Company.

estimating uncollectible accounts that emphasizes asset valuation rather than

income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

KKK. Rich should record an asset of P8,000 for the recourse obligation.
LLL. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
MMM. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
NNN. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
 be

GGGGG. P8,000
HHHHH. P34,740
IIIII. P42,740
JJJJJ. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

KKKK. P529,685
LLLL. P538,685
MMMM. P547,685
NNNN. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
OOOO.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

company received a check for the balance due from Chester Company.

estimating uncollectible accounts that emphasizes asset valuation rather than

income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

OOO. Rich should record an asset of P8,000 for the recourse obligation.
PPP. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
QQQ. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
RRR. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

KKKKK. P8,000
LLLLL. P34,740
MMMMM. P42,740
NNNNN. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

PPPP. P529,685
QQQQ. P538,685
RRRR. P547,685
SSSS. P556,685
31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
TTTT.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

company received a check for the balance due from Chester Company.

estimating uncollectible accounts that emphasizes asset valuation rather than

income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

SSS. Rich should record an asset of P8,000 for the recourse obligation.
 TTT. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
UUU. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
VVV. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

OOOOO. P8,000
PPPPP. P34,740
QQQQQ. P42,740
RRRRR. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

UUUU. P529,685
VVVV. P538,685
WWWW. P547,685
XXXX. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
YYYY.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?
A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

company received a check for the balance due from Chester Company.

Booth Transport Service for the freight cost. On June 12, the company received a check for the
balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
 B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

WWW. Rich should record an asset of P8,000 for the recourse obligation.
XXX. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
YYY. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
ZZZ. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

P8,000
A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

AAAA. Rich should record an asset of P8,000 for the recourse obligation.
BBBB. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
CCCC. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
 DDDD. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

SSSSS. P8,000
TTTTT. P34,740
UUUUU. P42,740
VVVVV. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

ZZZZ. P529,685
AAAAA. P538,685
BBBBB. P547,685
CCCCC. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
DDDDD.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.
Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

EEEE. Rich should record an asset of P8,000 for the recourse obligation.
FFFF. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
GGGG. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
HHHH. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
 be

WWWWW. P8,000
XXXXX. P34,740
YYYYY. P42,740
ZZZZZ. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subjec
A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

IIII. Rich should record an asset of P8,000 for the recourse obligation.
JJJJ. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
KKKK. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
LLLL. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

AAAAAA. P8,000
BBBBBB. P34,740
CCCCCC. P42,740
DDDDDD. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

EEEEE. P529,685
FFFFF. P538,685
GGGGG. P547,685
HHHHH. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
IIIII.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

MMMM. Rich should record an asset of P8,000 for the recourse obligation.
NNNN. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
OOOO. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
PPPP. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

EEEEEE. P8,000
FFFFFF. P34,740
GGGGGG. P42,740
HHHHHH. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subjec
A. P9,000
B. P10,000
C. P13,000
D. P19,000
13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

QQQQ. Rich should record an asset of P8,000 for the recourse obligation.
RRRR. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
SSSS. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
TTTT. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

IIIIII. P8,000
JJJJJJ. P34,740
KKKKKK. P42,740
LLLLLL. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

JJJJJ. P529,685
KKKKK. P538,685
LLLLL. P547,685
MMMMM. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
 NNNNN.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.
B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

UUUU. Rich should record an asset of P8,000 for the recourse obligation.
VVVV. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
WWWW. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
XXXX. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

MMMMMM. P8,000
NNNNNN. P34,740
OOOOOO. P42,740
PPPPPP. P14,740

QQQQQQ. 30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff

Corp. on October 1, 2014. Control was surrederd by Scarbrough. Duff accepted the
receivables subjec
RRRRRR. P34,740
SSSSSS. P42,740
TTTTTT. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

OOOOO. P529,685
PPPPP. P538,685
QQQQQ. P547,685
RRRRR. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,
A. P385, 260
SSSSS.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000
13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

YYYY. Rich should record an asset of P8,000 for the recourse obligation.
ZZZZ. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
AAAAA. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
BBBBB. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

UUUUUU. P8,000
VVVVVV. P34,740
WWWWWW. P42,740
XXXXXX. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

TTTTT. P529,685
UUUUU. P538,685
VVVVV. P547,685
WWWWW. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
 XXXXX.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000
13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

CCCCC. Rich should record an asset of P8,000 for the recourse obligation.
DDDDD. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
EEEEE. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
FFFFF. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

YYYYYY. P8,000
ZZZZZZ. P34,740
AAAAAAA. P42,740
BBBBBBB. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

YYYYY. P529,685
ZZZZZ. P538,685
AAAAAA. P547,685
BBBBBB. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
 CCCCCC.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260

28. Which of the following statements is correct?

 GGGGG. Rich should record an asset of P8,000 for the recourse obligation.
HHHHH. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
IIIII. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
JJJJJ. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

CCCCCCC. P8,000
DDDDDDD. P34,740
EEEEEEE. P42,740
FFFFFFF. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

DDDDDD. P529,685
EEEEEE. P538,685
FFFFFF. P547,685
GGGGGG. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
HHHHHH.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
received by Chester On June 8 from John Booth Transport Service for the freight cost. On June
12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260
28. Which of the following statements is correct?

KKKKK. Rich should record an asset of P8,000 for the recourse obligation.
LLLLL. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
MMMMM. Taylored should record a liability of P12,000, but no loss, related to the
recourse obligation.
NNNNN. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

GGGGGGG. P8,000
HHHHHHH. P34,740
IIIIIII. P42,740
JJJJJJJ. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

IIIIII. P529,685
JJJJJJ. P538,685
KKKKKK. P547,685
LLLLLL. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
MMMMMM.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
received by Chester On June 8 from John Booth Transport Service for the freight cost. On June
12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260
28. Which of the following statements is correct?

OOOOO. Rich should record an asset of P8,000 for the recourse obligation.
PPPPP. Taylored should record a liability and corresponding loss of 12,000 related to
the recourse obligation.
QQQQQ. Taylored should record a liability of P12,000, but no loss, related to the recourse
obligation.
RRRRR. No entry for the recourse obligation should be made by Taylored or Rich until the
debtor fails to pay.

29. Assuming all the receivables are collected, Taylored’s cost of factoring the receivables would
be

KKKKKKK. P8,000
LLLLLLL. P34,740
MMMMMMM. P42,740
NNNNNNN. P14,740

30. Scarbrough Corp., factored P600,000 of accounts receivable to Duff Corp. on October 1,
2014. Control was surrederd by Scarbrough. Duff accepted the receivables subject to recourse
for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts
receivable. In addition, Duff charged 15% interest computed on a weighted-average time to
maturity of the receivables of fifty-four days. The fair value of the recourse obligation is P9,000.
Scarbrough will receive and record cash of

NNNNNN. P529,685
OOOOOO. P538,685
PPPPPP. P547,685
QQQQQQ. P556,685

31. Synthia Corp. factored P750,000 of accounts receivable to Thomas Company on December
3, 2014. Control was surrendered by Synthia. Thomas accepted27. Taylored will receive and
record cash of,

A. P385, 260
RRRRRR.
P556,685 received by Chester On June 8 from John Booth Transport Service for the freight cost.
On June 12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
received by Chester On June 8 from John Booth Transport Service for the freight cost. On June
12, the company received a check for the balance due from Chester Company.

Required:
a) Prepare journal entries on

in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260
C.P365,260
D. P377,260
in prior years. Tara’s December 31, 2013 allowance for uncollectible accounts was P22,000.
Under the aging method, what amount of allowance for uncollectible accounts should Tara report
at Decernber 31, 2014?

A. P9,000
B. P10,000
C. P13,000
D. P19,000

13. A method of estimating uncollectible accounts that emphasizes asset valuation rather than
income measurement is the allowance method based on
A. Aging the receivables.
B. Direct write-off.
C. Gross sales.

B. P357,260