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Course & Year: BSA-1C
Subject: Conceptual Framework & Accounting Standard
Assignment: Accounts Receivable
Required:
a) Compute the correct amount pf accounts receivable.
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b) Prepare one compound entry to adjust the accounts receivable.
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Problem 4-3 (ACP)
Affectionate Company sold merchandise on account for P500,000. The terms are 3/10,
n/30. The related freight charge amounted to P10,000. The account was collected within
the discount period.
Required:
Prepare journal entries to record the transactions under the following freight terms:
Upon Sale:
Accounts Receivable 500,000
Freight Out 10,000
Sales 500,000
Allowance for Freight Charge 10,000
Upon Payment:
Cash 475,000
Sales Discount 15,000
Allowance For Freight Charge 10,000
Accounts Receivable 500,000
Upon Sale:
Accounts Receivable 500,000
Freight Out 10,000
Sales 500,000
Cash 10,000
Upon Payment:
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Cash 485,000
Sales Discount 15,000
Accounts Receivable 500,000
Upon Sale:
Accounts Receivable 500,000
Sales 500,000
Upon Payment:
Cash 485,000
Sales Discount 15,000
Accounts Receivable 500,000
Upon Sale:
Accounts Receivable 510,000
Sales 500,000
Cash 10,000
Upon Payment:
Cash 495,000
Sales Discount 15,000
Accounts Receivable 510,000
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Fiancee Company records sales return during the year as a credit to accounts
receivable.
However, at the end of the accounting period, the entity estimates the probable sales
return and records the same by means of an allowance account.
Required:
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 20,000
Allowance for Sales Return 20,000
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On June 15,2020 Romela Company sold 100 air conditioning units. The sale price for
each unit is P45,000.
All of sales are subject to terms 2/10, n/30. The entity used the gross method of
accounting for accounts receivable.
Required:
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 4,500,000
3. Prepare the 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
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