4-1

Trade accounts receivable ₱775,000.00

Less: Allowance for doubtful accounts 50,000.00
Accounts Receivable Net Realizable Value ₱725,000.00
Add: Trade notes receivable 100,000.00
Installment receivable 300,000.00
Advances to suppliers 150,000.00
Claim Receivable 15,000.00
Subscription Receivable 300,000.00
Interest Receivable 10,000.00
Trade and other receivables (current asset) ₱1,600,000.00

4-2
Accounts Receivable, Beginning
Add: Charge or Credit Sales
Less: Collections From Customers ₱5,300,000.00
Writeoffs 35,000.00
Merchandise Returns 40,000.00
Allowance for Shipping Damages 25,000.00
Accounts Receivable, Ending

Accounts Receivable, Ending

Add: Claims Receivable ₱60,000.00
Advances to Employees 10,000.00
Advances to Supplier 50,000.00
Trade and Other Receivables

5-1
a.)
Sales ₱5,000,000.00
Multiply: Credit Sales Rate 75%
Total Credit Sales ₱3,750,000.00
Multiply: Uncollectible Credit Sales Rate 2%
Total Uncollectible Credit Sales ₱75,000.00
Add: Allowance for Doubtful Accounts 20,000.00
Adjusted Allowance fro Doubtful Accounts ₱95,000.00

Adjusting Entry
Doubtful Accounts Expense 75,000.00
Allowance for Doubtful Accounts

b.)
Gross Sales ₱5,000,000.00
Multiply: Uncollectible Gross Sales Rate 1%
Total Uncollectible Gross Sales ₱50,000.00
Add: Allowance for Doubtful Accounts 20,000.00
Adjusted Allowance for Doubtful Accounts ₱70,000.00

Adjusting Entry
Doubtful Accounts Expense 50,000.00
Allowance for Doubtful Accounts

c.)
Adjusted Allowance for Doutbful Accounts ₱80,000.00
Less: Allowance for Doubtful Accounts 20,000.00
Allowance for Doutbful Accounts Reconciliation ₱60,000.00

Adjusting Entry
Doubtful Accounts Expense 60,000.00
Allowance for Doubtful Accounts

d.)
Accounts Receivable 500,000.00
Multiply: Allowance for Doubtful Accounting Maintaining Rate 10%
Adjusted Allowance for Doubtful Accounts 50,000.00
Less: Allowance for Doubtful Accounts 20,000.00
Allowance for Doubtful Accounts Reconciliation 30,000.00

Adjusting Entry
Doubtful Accounts Expense 30,000.00
Allowance for Doubtful Accounts

5-2
c.)
Accounts Receivable, Beginning
Add: Sales on Account ₱7,000,000.00
Writeoff Recoveries 10,000.00
Less: Collections From Customers Within Discount Period ₱2,450,000.00
Sales Discount ₱50,000.00
Collections From Custoemr Beyond Discount Period 3,900,000.00
Writeoff 30,000.00
Writeoff Recoveries Received in Cash 10,000.00
Credit Memo for Sales returns 70,000.00
Accounts Receivable, Ending
Less:Adjusted Allowance for Doubtful Accounts
Accounts Receivabale, Net Realizable Value

5-3
Notes
Cash Sales ₱800,000.00
Divide: Cash Sales Percent Rate 10%
Gross Sales ₱8,000,000.00
Less: Cash Sales 800,000.00
Total Credit Sales ₱7,200,000.00

Total Credit Sales ₱7,200,000.00

Collection on Discount Period Rate 10%
Deductions to Accounts Receivable ₱720,000.00
Sales Discount 36,000.00
Collection from Customers Within Discount Period ₱684,000.00

Collection from Customers Beyond Discount Period 5,940,000.00

Cash Discounts 10,000.00

Sales Returns 80,000.00

Writeoffs 60,000.00

Writeoff Recoveries 10,000.00

Accounts Receivable, Beginning

Add: Debits
Total Credit Sales ₱7,200,000.00
Writeoff Recoveries 10,000.00
Less: Credits
Collections from Customers Within Discount Period ₱684,000.00
Sales Discount 36,000.00
Collections From Customers Beyond Discount Period 5,940,000.00
Collections From Write offs 10,000.00
Sales Returns 80,000.00
Writeoffs 60,000.00
Accounts Receivable, Ending
Less:Adjusted Allowance For Doubtful Accounts
Allowance for Doubtful Accounts, Beginning ₱100,000.00
Add: Allowance for Doubtful Accounts Reconciliation 20,000.00
Allowance For Sales Discount
Accounts Receivable, Net Realizable Value

Note
Accounts Receivable, Ending
Rate for Doubtful Accounts (Closest Possible Rate)
Adjusted Allowance for Doubtful Accounts
Less: Allowance for Doubtful Accounts, Beginning
Allowance for Doubtful Accounts Reconciliation

6-4
Principal
Rate
Time
Payment

Year Beginning
0 ₱1,995,000.00
1 1,995,000.00
2 1,654,600.00
3 1,286,968.00
4 889,925.44
5 ₱461,119.48
Totals

Note Receivable, Ending

Note Receivable Face Value ₱2,500,000.00
Less: Payment, 2020 500,000.00
Less: Unearned Interest Income, Ending
Total Interest Income ₱505,000.00
Less: Interest Earned,2020 159,600.00
Amortized Cost/Carrying Amount of Note Receivable, 2020

Beginning, Carrying Amount, 2021

Multiply: Rate
Interest Income, 2021

6-6
Note Receivable From Sale of Idle Building , Beginning
Less: First Principal Payment
Carrying Amount
Interest Receivable (9% of Payment)
Present Value

Note Due From Officer

Add: Interest Receivable
Present Value

Note receivable From Sale of Parcel of Land

Fair Value of Land

Less: Cash Downpayment
Note Receivable, 1/1/2021
Annual installment (Principal & Interest)
Interest Receivable (2,800,000 * 10%)
Principal Payment

Principal
Interest Receivable (2,800,000*10%)
Principal Payment

Fair Value of Land

Book Value of Land (Cost of Acquisition)
Gain on Sale of Land

a.) Notes Receivable, Current Portion

Note from Sale of Idle Building

Note from an Officer
Note from Sale of Parcel of Land
Note Receivable - Current

Interest Receivable - Current

Interest Receivable - Solid Company

Interest receivable - Boom Company
Interest Receivable - Current

b.) Note Receivable, Non-Current Portion

Note from Sale of Idle Building

Note from an Officer
Note from Sale of Parcel of Land
Note Receivable - Non Current
 875,000.00

₱600,000.00
6,000,000.00

5,400,000.00
₱1,200,000.00

₱1,200,000.00

120,000.00
₱1,320,000.00

75,000.00
 50,000.00

60,000.00

30,000.00

₱1,000,000.00 AfDA, Beg

Less: Debits
7,010,000.00 Writeoffs
Add: Credit
Writeoff Recoveries
afda, ending

Accts receivable
6,510,000.00 maintaining rate
₱1,500,000.00 Adjusted accts re
60,000.00
₱1,440,000.00 adjusted afda
Less: Agda, ending
Afda reconciliaton
 0.05

₱2,000,000.00

₱7,210,000.00

₱6,810,000.00
₱2,400,000.00

120,000.00
10,000.00
₱2,270,000.00

₱2,400,000.00
5%
₱120,000.00
50,000.00
 ₱70,000.00

1,995,000.00
0.08
5.00
500,000.00

PMT Interest Principal

₱0.00 ₱0.00 ₱0.00
500,000.00 159,600.00 340,400.00
500,000.00 132,368.00 367,632.00
500,000.00 102,957.44 397,042.56
500,000.00 71,194.04 428,805.96
500,000.00 38,880.52 461,119.48
₱2,500,000.00 ₱505,000.00 ₱1,995,000.00

₱2,000,000.00

345,400.00
₱1,654,600.00

₱1,654,600.00
0.08
₱132,368.00

₱7,500,000.00
2,500,000.00
₱5,000,000.00
450,000.00
₱5,450,000.00

₱2,000,000.00
-
₱2,000,000.00

₱4,000,000.00
1,200,000.00
₱2,800,000.00
 ₱883,320.00
280,000.00
₱603,320.00

₱2,800,000.00
280,000.00
₱3,080,000.00

₱4,000,000.00
3,000,000.00
₱1,000,000.00

₱2,500,000.00
-
603,320.00
₱3,103,320.00

₱450,000.00
280,000.00
₱730,000.00

₱2,500,000.00
2,000,000.00
2,196,680.00
₱6,696,680.00
 40,000.00

30,000.00

10,000.00
20,000.00

1,500,000.00
0.04
60,000.00

60,000.00
20,000.00
40,000.00
36,000.00

159,600 340,400 500,000

132,368 367,632 500,000
102,957 1.08
71,194 -5
38,881 0.68058319703
505,000 1
0.31941680297
0.08
 3.99271003708 3.99
500,000 500,000
1,996,355.02 1995000

Ending balance - Carrying Amount

1,995,000.00
1,654,600.00
1,286,968.00
889,925.44
461,119.48
-
5-5
c
Determine the net realizable value of accounts receivable

notes
Sales - Cash and Credit 3,070,000.00
Less: Cash received from cash customers 470,000.00
Total Credit Sales (Debit) 2,600,000.00

Cash Received from Credit Customers 2,455,000.00

Less: Cash Received Within Discount Period (Credit) 1,455,000.00
Cash received Beyond Discount Period (Credit) 1,000,000.00

Collections Within Discount Period 1,455,000.00

Divide: Total Collection Rate 0.97
Total Gross Sales 1,500,000.00
Less: Collections Within Discount Period 1,455,000.00
Sales Discount (Credit) 45,000.00

Writeoffs (Credit) 20,000.00

Credit Memo for sales returns and allowances (Credit) 55,000.00
Writeoff Recoveries (Debit) (Credit) 5,000.00

Accounts Receivable, Beginning

Add: Debits
Total Credit Sales ₱2,600,000.00
Writeoff Recoveries 5,000.00
Less: Credits
Collections Within Discount Period ₱1,455,000.00
Sales Discount 45,000.00
Collections Beyond Discount Period 1,000,000.00
Writeoff 20,000.00
Credit Memo for Sales Returns & Allowances 55,000.00
Collections From Writeoff Recoveries 5,000.00
Accounts Receivable, Ending
Less: Allowance for Doutbful Accounts, Adjusted
Accounts Receivable, Net Realizable Value

5-5
determine the net realizable value of accts receivable at year end

Sales on Account (Debit) 7,935,000.00

Collections Within 10-Day Discount Period (Credit) 4,410,000.00

Divide: Total Collection Rate 0.98
Total Gross Sales 4,500,000.00
Less: Collections Within Discount Period 4,410,000.00
Sales Discount, 10-Day (Credit) 90,000.00

Collections Within 15-Day Discount Period (Credit) 2,475,000.00

Divide: Total Collection Rate 0.99
Total Gross Sales 2,500,000.00
Less: Collections Within Discount Period 2,475,000.00
Sales Discount, 15-Day (Credit) 25,000.00

Writeoff Recoveries (Debit) (Credit) 15,000.00

Cash Received From Customers

Less: Collections Within 10-Day Discount Period 4,410,000.00
Collections Within 15-Day Discount Period 2,475,000.00
Collections From Writeoff recoveries 15,000.00
Collections Beyond Discount Period (Credit)

Writeoffs (Credit) 55,000.00

Credit Memo for Sales Return (Credit) 30,000.00

Accounts Receivable, Beginning

Add: Debits
Total Credit Sales ₱7,935,000.00
Writeoff Recoveries 15,000.00
Less: Credits
Collections Within 10-Day Discount Period ₱4,410,000.00
Sales Discount, 10-Day 90,000.00
Collections Within 15-Day Discount Period 2,475,000.00
Sales Discount, 15-Day 25,000.00
Collections Beyond Discount Period 1,100,000.00
Writeoffs 55,000.00
Credit Memo for Sales Returns & Allowances 30,000.00
Collections From Writeoff Recoveries 15,000.00
Accounts Receivable, Ending
Less: Adjusted Allowance for Doutbful Accounts
Accounts Receivable, Net Realizable Value

afda beg
Less: Debits
Writeoffs
Add: Credits
Writeoff Recoveries
Afda ending

Accts receivable, ending

Multiply: Maintaining rate for afda (60,000/1,500,000)
Adjusted afda
Less: Afda ending
AFDA RECONCILIATION
 ₱600,000.00

2,605,000.00

afda beg
Less: Debits
Writeoffs
Add: Credits
2,580,000.00 Writeoff Recoveries
₱625,000.00 Afda ending
60,000.00 Add: afda reconciliation
₱565,000.00 adjusted afda

sales
less: sd 45,000
sra 55,000
net credit sales
Multiply: Doutbtful Accounts rate
Afda Reconciliation
8,000,000.00

6,900,000.00
1,100,000.00

₱1,500,000.00

7,950,000.00

₱8,200,000.00
₱1,250,000.00
50,000.00
₱1,200,000.00

60,000

55,000

15,000
 20,000

₱1,250,000.00
0.04
50,000.00
20,000.00
30,000.00
 25,000

20,000

5,000
10,000
50,000
60,000

2,600,000

100,000
2,500,000
2%
50000