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    ACCT202

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    ACCT202

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    143 views18 pages

    Accounts Receivable and AFBD

    Uploaded by

    eia aie
    ACCT202

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 18

    Beginning (2018) Ending (2019)

    A/R 4,320,000 4,725,000


    Less: NRV 4,252,500 4,590,000
    AFDA 67,500 135,000

    AFDA
    write off 144,000 67,500 beg. balance
    36,000 recovery
    144,000 103,500
    bal. before adj. 40,500
    175,500

    135,000 end balance


    Transactions for the year:
    Write-off:
    Allowance for doubtful accounts 144,000
    Accounts receivable

    Recoveries:
    Accounts receivable 36,000
    Allowance for doubtful accounts

    Cash 36,000
    Accounts receivable
    144,000

    36,000

    36,000
    Accounts receivable
    beg. balance 1,950,000 150,000 write off
    credit sales 8,250,000 7,500,000 collections
    225,000 sales return
    10,200,000 7,875,000
    end. balance 2,325,000
    A/R, December 31 2,325,000

    Less: Allowance for sales return 75,000


    Allowance for uncoll. accounts 375,000 450,000
    Net realizable value, December 31 1,875,000
    A) PERCENTAGE OF SALES

    Sales 12,800,000
    % of sales 3.00%
    Doubtful accounts exp. 384,000

    AFDA, beginning 160,000


    Add: AFDA, current 384,000
    Recovery 32,000
    576,000
    Less: Accounts written off 208,000
    AFDA, end 368,000

    Accounts receivable, end 3,200,000


    Less: AFDA, end 368,000
    NRV, December 31 2,832,000

    B) PERCENTAGE OF A/R

    Accounts receivable, end 3,200,000


    % of A/R 8.00%
    AFDA, end 256,000

    AFDA, beginning 160,000


    Add: Recovery 32,000
    192,000
    Less: Accounts written off 208,000
    AFDA, debit balance - 16,000
    AFDA, end 256,000
    AFDA, adjustment 272,000

    Accounts receivable, end 3,200,000


    Less: AFDA, end 256,000
    NRV, December 31 2,944,000

    C) AGING OF A/R

    AFDA, beginning 160,000


    Add: Recovery 32,000
    192,000
    Less: Accounts written off 208,000
    AFDA, debit balance - 16,000
    AFDA, end 320,000
    AFDA, adjustment 336,000

    Accounts receivable, end 3,200,000


    Less: AFDA, end 320,000
    NRV, December 31 2,880,000
    Doubtful accounts expense 384,000
    Allowance for doubtful accounts 384,000

    Doubtful accounts expense 272,000


    Allowance for doubtful accounts 272,000
    Doubtful accounts expense 336,000
    Allowance for doubtful accounts 336,000
    AFDA, January 1 20,000
    A/R, January 1 500,000
    % of AFDA 4.00%

    Journal entries:
    a) Accounts receivable 3,500,000
    Sales

    b) Cash 1,225,000
    Sales discount (squeeze) 25,000
    Accounts receivable (1,225,000/98%)

    c) Cash 1,950,000
    Accounts receivable

    d) Allowance for doubtful accts. 15,000


    Accounts receivable

    e) Accounts receivable 5,000


    Allowance for doubtful accts.

    Cash 5,000
    Accounts receivable

    f) Sales return 35,000


    Accounts receivable
    Accounts receivable, 12/31 750,000
    % of accounts receivable 4.00%
    AFDA, 12/31 30,000

    Doubtful accounts expense 20,000


    Allowance for doubtful accounts

    Accounts receivable, 12/31 750,000


    Less: AFDA, 12/31 30,000
    NRV, 12/31 720,000
    Accounts receivable
    500,000 (b) 1,250,000
    (a) 3,500,000 c) 1,950,000
    (e) 5,000 (d) 15,000
    3,500,000 (e) 5,000
    (f) 35,000
    4,005,000 3,255,000
    750,000
    1,250,000

    1,950,000 Allowance for doubtful accounts


    (d) 15,000 20,000
    (e) 5,000
    15,000 15,000 25,000
    10,000
    20,000
    5,000 30,000

    5,000

    35,000
    20,000
    Sales (all on credit) 11,400,000
    Less: Sales discount 1,200,000
    Sales returns and allowances 600,000 1,800,000
    Net credit sales 9,600,000

    Net credit sales 9,600,000


    % of sales 5.00%
    Doubtful accounts expense 480,000

    AFDA, January 1 240,000


    Add: Doubtful accts. Exp., current 480,000
    Recovery 60,000 540,000
    780,000
    Less: Accounts written off 120,000
    AFDA, 12/31 660,000
    Chocolatey Company
    Accounts Receivable Aging Schedule
    December 31, 2018

    Customer Balance, 12/31/18 0 - 30 days 31 - 60 days


    Hersheys 35,180 14,000 21,180
    Meiji 20,920
    Snickers 30,600 20,000
    KitKat 31,600 31,600
    Ferrero 17,400
    Goya 45,140 23,140
    TOTAL
    180,840 65,600 44,320

    COMPUTATION OF REQUIRED ALLOWANCE:


    Age of accounts A/R Balance Rate
    0 - 30 days 65,600 1%
    31 - 60 days 44,320 1.50%
    61 - 90 days 32,600 3%
    91 - 120 days 29,400 10%
    Over 120 days 8,920 50%
    TOTAL 180,840
    ADJUSTMENT:

    Unadj. 5,500 15,199

    9,699 Required

    NET REALIZABLE VALUE:


    A/R, 12/31/18 180,840
    Less: Allow. For BD 9,699
    NRV, 12/31/19 171,141
    ompany
    Aging Schedule
    1, 2018

    61 - 90 days 91 - 120 days Over 120 days

    12,000 8,920
    10,600

    17,400
    22,000
    32,600 29,400 8,920

    Estimate
    656
    665
    978
    2,940
    4,460
    9,699
    Bad debt expense 15,199
    Allowance for bad debt 15,199

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