This Study Resource Was: Chapter 18: Accounts Receivable

Chapter 18: ACCOUNTS RECEIVABLE
Problem 18-1 (AICPA Adapted)

Roxy Company provided the following information relating to accounts receivable for the
current year:
Accounts Receivable on January 1 1,300,000
Credit sales 5,400,000
Collection from customers, excluding recovery 4,750,000
Accounts written off 125,000
Collection of accounts written off in prior year
(Customer credit was not reestablished) 25,000
Estimated uncollectible receivables per aging
Of receivables at December 31 165,000
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er as
What is the balance of accounts receivable, before the allowance for doubtful accounts on
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December 31?
a. 1,825,000
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b. 1,850,000
c. 1,950,000 rs e
ou urc
d. 1,990,000
o

aC s
vi y re
Jay Company provided the following data relating to accounts receivable for the current year:
Accounts receivable, January 1 650,000
1,700,00
credit sales 0
ed d
sales return 75,000

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accounts written off 40,000

2,150,00
collections from customers 0
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estimated future sales return at December 31 50,000

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estimated uncollectible accounts at 12/31 per aging 110,000

What amount should be reported as net realizable value at accounts receivable on December
31?
sh
a. 1,200,000
b. 1,125,000
c. 1,085,000
d. 925,000
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Problem 18-3 (IAA)
Infra company provided the following data for the current year:
Sales on account 3,600,00
Notes receivable to settle accounts 400,000
Provision for doubtful accounts 90,000
accounts receivable written off 25,000
purchases on account 3,900,000
payments to creditors 3,200,000
discounts allowed by creditors 260,000
merchandise returned by customers 15,000
collections received to settle accounts 2,450,000
notes given to creditors in settlement of accounts 250,000
merchandise returned to suppliers 70,000
payments on notes payable 100,000
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discounts taken by
er as
customers 40,000
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collection received in settlement of notes 180,000
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What is the net realizable value of accounts receivable at year-end?
o.
a. 605,000
b. 890,000 rs e
ou urc
c. 825,000
d. 670,000
o

aC s
vi y re
In the examining the accounts of Brute Company it is ascertained that purchases relating to
both receivables and payables are included in a whole controlling account called “receivables
control” with a debit balance of P 4,850,000. An analysis of the makeup of this account revealed
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the following:
ar stu
Debit Credit
7,800,00
Accounts receivable- customers
0
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trade accounts receivable- officers 500,000

debut balances- creditors 300,000
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postdated checks from customers 400,000

subscriptions receivable 800,000
4,500,00
accounts payable for merchandise
sh
0
credit balances in customers' accounts 200,000
cash received in advance from customers 100,000
expected bad debts 150,000
After further analysis of the aged accounts receivable, it is determined that the allowance for
doubtful accounts should be P 200,000.
1. What is the net realizable value of accounts receivable?
a. 8,000,000
b. 8,500,000
c. 8,300,000
d. 8,550,000
2. What is the balance of accounts payable?
a. 4,200,000
b. 4,700,000
c. 4,500,000
d. 4,800,000
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On December 31, 2016, Miami Company reported that the current receivables consisted of the
er as
following:
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Trade accounts receivable 930,000
allowance for uncollectible accounts 20,000
o.
claim against shipper for goods lost in transit in
november rs e 30,000
ou urc
selling price of unsold goods sent by miami on consignment 260,000
at 130% of cost and not included in Miami's ending
o
inventory
security deposit on lease of warehouse used 300,000
aC s
vi y re
for storing some

inventories
TOTAL 1,500,000
On December 31, 2016, what total amount should be reported as trade and other receivables
ed d
under current assets?

ar stu
a. 940,000
b. 1,200,000
c. 1,240,000
is
d. 1,500,000
Th

Faith Company provided the following information relating to current operations:
sh
Accounts receivable, January 1 4,000,000

Accounts receivable collected 8,400,000
Cash sales 2,000,000
Inventory, January 1 4,800,000
Inventory, December 31 4,400,000
Purchases 8,000,000
Gross margin on sales 4,200,000
What is the balance of the accounts receivable on December 31?

a. 8,200,000
b. 6,200,000
c. 2,000,000
d. 4,200,000
Problem 18-7 (PHILCPA Adapted)

Honduras Company revealed a balance of P8, 200,000 in the account receivable control account
at the year-end.
An analysis of the accounts receivable showed the following:
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Accounts known to be worthless 100,000
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advance payments to creditors on purchase orders 400,000
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1,000,00
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advances to affiliated entities
0
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customers' accounts reporting credit balances arising
rs e (600,000)
ou urc
from sales returns
interest receivable on bonds 400,000
2,000,00
o
trade accounts receivable- unassigned

0
aC s
2,200,00
vi y re
subscription receivable due in 30 days 0

trade accounts receivable- assigned (finance
1,500,00
company's equity in assigned account is (500,000)
ed d
0
ar stu
trade installments receuvable due 1-18 months

including unearned finance charge of 50,000 850,000
trade accounts receivable from officers, due currently 150,000
trade accounts on which postdated checks are held 200,000
is
and no entries were made on receipt of

Th
checks
8,200,00
total 0
sh
What amount should be reported as Trade accounts receivables at year-end?

a. 4,650,000
b. 4,700,000
c. 4,150,000
d. 4,050,000
Problem 18-8 (IAA)

Von Company provided the following data for the current year in relation to accounts
receivable:
Debits
January 1 balance after deducting credit
balance
of 30,000 530,000
Charge sales 5,250,000
charge for goods out on sonsignment 50,000
shareholders' subscriptions 200,000
accounts written off but recovered 10,000
cash paid to customer for January 1 credit balance 25,000
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goods shipped to cover January 1 credit
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5,000
balance
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Deposit on contract 120,000
claim against common carrier 15,000
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advances to supplier 155,000
rs e
ou urc
Credits
Collectiond from customers, including overpayment 5,200,000
of 50,000
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writeoff 35,000
aC s
merchandise returns 25,000

vi y re
allowances to customers for shipping damages 15,000

collection on carrier claim 10,000
collection on subscription 50,000
ed d
What is the balance of the accounts receivable on December 31?

ar stu
a. 565,000
b. 595,000
c. 545,000
is
d. 595,000
Th
Problem 18-9 (IAA)

sh
Wonder company provided the following transactions affecting accounts receivable during the
current year:
sales (cash and credit) 5,900,000
cash received from credit customers, all of whom
took advantage of the discount feature of
the
credit terms 4/10, n/30 3,024,000
cash received from cash customers 2,100,000
accounts receivable written off as worthless 50,000
credit memorandum issued to credit
customers
for sales return and allowances 250,000
cash refunds given to cash customers for sale
return and allowances 20,000
recoveries on accounts receivable written off
as
uncollectible in prior periods not included in
cash received from customers stated above 80,000
the balances on January 1 were as follows:
accounts receivable 950,000
allowance for doubtful accounts 100,000
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The entity provided for uncollectible account losses by crediting allowances for doubtful
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accounts in the amount of P70, 000 for the current year.
o.
1. What is the balance of accounts receivable on December 31?
a. 1,300,000 rs e
ou urc
b. 1,426,000
c. 1,280,000
d. 1,220,000
o
2. What is the balance of allowance for doubtful accounts on December 31?

aC s
a. 120,000
vi y re
b. 200,000
c. 250,000
d. 170,000
ed d
ar stu
Problem 18-10
Germany Company started business at the beginning of current year; the entity established an
is
allowance for doubtful accounts estimated at 5% of credit sales. During the year, entity wrote
off P50, 000 of uncollectible accounts
Th
Further analysis showed that merchandise purchased amounted o P9, 000,000 and ending
merchandise inventory was P1, 500,000. Goods were sold at 40% above cost.
The total sales comprised 80% sales on account and 20% cash sales. Total collections from
sh
customers, excluding cash sales, amounted to P6, 000,000
1. What is the cost of goods sold?

a. 7,500,000
b. 5,400,000
c. 3,600,000
d. 6,900,000
2. What is the amount of sales on account?
a. 10,500,000
b. 18,750,000
c. 12,000,000
d. 8,400,000
3. What is the net realizable value of accounts receivable at year-end?
a. 1,980,000
b. 2,350,000
c. 1,930,000
d. 2,400,000
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SUBMITTED BY: SINGIAN, MARIE BERNADETH C.
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SUBMITTED TO: MS. CAMILLE GAMBOA GARCIA, CPA
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BSA 4Y1-1 rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh
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Chapter 18: ACCOUNTS RECEIVABLE

Problem 18-1 (AICPA Adapted)

Problem 18-2 (AICPA Adapted)

sales return 75,000

accounts written off 40,000

estimated future sales return at December 31 50,000

estimated uncollectible accounts at 12/31 per aging 110,000

Problem 18-4 (AICPA Adapted)

trade accounts receivable- officers 500,000

postdated checks from customers 400,000

Problem 18-5 (AICPA Adapted)

for storing some

under current assets?

Problem 18-6 (AICPA Adapted)

Accounts receivable, January 1 4,000,000

What is the balance of the accounts receivable on December 31?

Problem 18-7 (PHILCPA Adapted)

trade accounts receivable- unassigned

subscription receivable due in 30 days 0

trade installments receuvable due 1-18 months

and no entries were made on receipt of

What amount should be reported as Trade accounts receivables at year-end?

Problem 18-8 (IAA)

merchandise returns 25,000

allowances to customers for shipping damages 15,000

What is the balance of the accounts receivable on December 31?

Problem 18-9 (IAA)

2. What is the balance of allowance for doubtful accounts on December 31?

customers, excluding cash sales, amounted to P6, 000,000

1. What is the cost of goods sold?

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