Trade discounts (10,000)

Stock subscription receivable 200,000

How much is the amount of nontrade receivables? c. 240,000

12. The following data are available on Dec. 31, 2010 for OKS Lang Company:
Credit sales 6,500,000 Accounts receivable 1,640,000
Allow. For bad debts –beg. 88,000 Accounts written off 92,000
Recovery of accounts previously written of 16,000
What is the amount of bad debt expense if based on aging, 60% of the total A/R is 96% collectible while the remaining 40% is 80%
collectible c. 158,560

13. All of Cleeneth’s sales are on a credit basis. The following information is available for 2010:
Allowance for doubtful accounts, 1/1/2010 18,000
Sales 950,000
Sales returns 80,000
Accounts written off as uncollectible, 11/30/2010 20,000
Cleeneth provides for doubtful accounts expense at the rate of 3% of net sales. At November 3, 2010, what is the entry to recognize
accounts written off?
a. Bad debt expense 20,000
Accounts receivable 20,000
b. Bad debt expense 20,000
Allow. For B/D 20,000
c. Allowance for doubtful accounts 20,000
Accounts receivable 20,000
d. Allowance for bad debts 20,000
Bad Debt expense 20,000
14. The following data are available on Dec. 31, 2010 for OKS Lang Company:
Credit sales 6,500,000 Accounts receivable 1,640,000
Allow. For bad debts –beg. 88,000 Accounts written off 92,000
Recovery of accounts previously written of 16,000. The company estimates that 9% of Accounts receivable is uncollectible. Under
the direct write off method, the amount of bad debt expense is
a. 147,600
b. 135,600
c. 92,000
d.88,000

14. Trade receivables are classified as current assets if they are reasonably expected to be collected
a. within one year.
b. Within the normal operating cycle.
c. Within one year or within the operating cycle, whichever is shorter.
d. Within one year or within the operating cycle, whichever is longer.

15. Accounting for the interest in a non interest bearing note receivable is an example of what aspect of accounting theory?
a. Matching b. Verifiability
c. Substance over form d. Accounting entity

16. A company shows cash balance of P175,000 on its bank statement dated June 30. As of June 30, there are 55,000 of
outstanding checks and P37,500 of deposits in transit.
What is the correct cash balance on the company books as of June 30? d. 157,500

17. The following information pertains to Layson Company on December 31,2015

Cash balance 258,500
Cash balance per bank statement 270,500
Checks outstanding 35,000
Bank service charge shown on December bank statement 1,000
Error made by Layson Company in recording a check that
Cleared the bank in Dec ( check was drawn in
Dec for 14,500 but recroded at P18,500) 4,000
Deposit in transit 26,000
The correct cash balance on December 31,2015 is