Dreamer Company

Required:
a. Compound Entry
Debit Credit
Accounts Receivable 775,000
Notes Receivable 100,000
Installment Receivable 300,000
Advances to suppliers 150,000
Advances to subsidiary 400,000
Claim Receivable 15,000
Subscription Receivable 300,000
Accrued interest Receivable 10,000
Customer's credit balances 30,000
Advances fromCustomers 20,000
Receivables 2,000,000

b. trade and other receivables

Accounts Receivable 775,000

Allowance for doubtful accounts -50,000
Notes Receivable 100,000
Intallment receivable 300,000
Advances to suppliers 150,000
Claim receivable 15,000
Subscription receivable 300,000
Accrued interest receivable 10,000
Total trade and other receivables 1,600,000

c. Indicate the classification and presentation of the other items excluded from required b.

Advance subsidiary - it should be classified as noncurrent and presented as long-term investment

Customer's credit balance and advances from customers - It should be classified as current liabilities and included as part of "
bilities and included as part of "trade and other receivables"
Credible Company

Required:

a. Correct amount of receivable

Accounts receivable - Jan1 600,000

Charge sales 6,000,000
Total 6,600,000
Less: Collection from customers 5,300,000
Writeoff 35,000
Merchandise returns 40,000
Allowances to customers 25,000 5,400,000
Accounts receivable - Dec31 1,200,000

b. Compound Entry
Debit Credit
Subscription Receivable 150,000
Deposit on contract 120,000
Claim receivable 60,000
Advances to employees 10,000
Advances to affiliated 100,000
Advances to supplier 50,000
Accounts Receivable 490,000

c. Trade and other receivable under current assets

Accoutns receivable 1,200,000

Claim receivable 60,000
Advances to employee 10,000
Advances to supplier 50,000
Total trade and other receivables 1,320,000

d. Indicate the classification and presentation of the other items

Subscription receivable - it should be deducted from subscribed share capital

Deposit on contract - it should be classified as noncurrent and presented as other noncurrent asset
Advance to affiliate - it should be classified as noncurrent and presented as long-term investment
Affectionate Company

Required:
1. FOB destination and freight collect
Debit Credit
a. Accounts Receivable 500,000
Freight out 10,000
Sales 500,000
Allowance for freight charge 10,000

b. Cash 475,000
Sales discount 15,000
Allowance for freight charge 10,000
Accounts receivable 500,000

2. FOB destination and freight prepaid

a. Accounts receivable 500,000

Freight out 10,000
Sales 500,000
Cash 10,000

b. Cash 485,000
Sales discount 10,000
Accounts Receivable 500,000

3. FOB shipping point and freight collect

a. Accounts receivable 500,000

Sales 500,000

b. Cash 485,000
Sales discount 10,000
Accounts Receivable 500,000

4. FOB shipping point and freight prepaid

a. Accounts receivable 510,000

Sales 500,000
Cash 10,000

b. Cash 495,000
Sales discount 15,000
Accounts Receivable 510,000
Fiancee Company

Required:
Prepare journal entries to record the transactions
Debit Credit
1) Accounts Receivable 4,000,000
Sales 4,000,000

2) Cash 1,470,000
Sales discount 30,000
Accounts receivable 1,500,000

3) Cash 1,000,000
Accounts receivable 1,000,000

4) Sales return 100,000

Accounts receivable 100,000

5) Sales return 40,000

Allowances for sales return 40,000
5pts
Romela Company (Gross method)

Required:
1) Prepare journal entry to record the sale
Debit Credit
Accounts Receivable 4,500,000
Sales revenue 4,500,000

2) Prepare journal entry to record receipt of the payment assuming the correct amount was received on June 25,2020

Cash 4,410,000
Sales discount 90,000
Accounts receivable 4,410,000

3) Prepare journal entry to record receipt of the payment assuming the correct amount was received on July 10,2020

Cash 4,500,000
Accounts receivable 4,500,000
eceived on June 25,2020

eceived on July 10,2020

Prime Company (Net method)

Required:
1) Prepare journal entry to record the sale
Debit Credit
Accounts receivable 2,450,000
Sales revenue 2,450,000

2) Prepare journal entry to record receipt of the payment assuming the correct amount was received on Feb 24,2020

Cash 2,450,000
Accounts receivable 2,450,000

3) Prepare journal entry to record receipt of the payment assuming the correct amount was received on March 10,2020

Cash 2,500,000
Accounts receivable 2,450,000
Sales discount forfeited 50,000
d on Feb 24,2020

d on March 10,2020
Raven Company

Required

a. Prepare journal entries to record sales

Debit Credit
Accounts receivable 4,000,000
Sales revenue 4,000,000

b. Prepare jounal entries to record sales return

Sales return 300,000

Accounts receivable 300,000

c. Prepare journal entries to record year-end adjusting entry for estimated sales return

Sales return 100,000

Allowance for sales return 100,000

Estimated sales return (10%*4,000,000) 400,000

Actual returns 300,000
Balance 100,000

3pts
26pts