Answer the problem using this excel file

File name : IA_FINALS_ACTIVITY 1_SURNAME_FIRSTNAME

SUBJECT : IA_FINALS_ACTIVITY 1_SURNAME_FIRSTNAME

Instruction : Using your Book (Intermediate Accounting Part 1) , answer the problems 4-8 to 4-16
Topic - Accounts Receivable

Use the given tabs for your answers

Deadline : My 2, 2022 at 8:30 PM

s 4-8 to 4-16
 Trade Account Receivables
Less: Allowance for Doubtful Accounts
Claim Againts Shipper For Goods
Lost in Transit in November
Total Current Trade and Other Receivable

The answer is letter A

 2,000,000.00
(100,000.00)

300,000.00
Receivable 2,200,000.00
 Accounts Receivable January 1
Credit Sale
Less: Sales Return
Accounts Written off
Collection from Costumer
Estimated Future Sales return on December 31
Estimated Uncollectable Accounts per Aging at Year End
Net Realizable Value of Accounts Receivable

The answer is letter B

 1,300,000.00
5,500,000.00
150,000.00
100,000.00
5,000,000.00
50,000.00
t Year End 250,000.00
1,250,000.00
 Accounts Receivable, January 1
Add: Credit Sales
Total
Less: Collection from Costumer, Excluding Recovery
Accounts Written Off
Accounts Receivable, December 31

The answer is letter A

 1,300,000.00
5,400,000.00
6,700,000.00
4,750,000.00
125,000.00 4,875,000.00
1,825,000.00
 Accounts Receivable
Trade Installmernt Receivable (850,000 - 50,000)
Accounts Receivable From Officers
Accounts on Which Postdated Checks are Held
Total trade Accounts Receivable

The Answer is letter A

3,500,000.00
800,000.00
150,000.00
200,000.00
4,650,000.00
 Accounts Receivable, January 1
Credit Sale During the year
Less: Accounts receivable Collected
Accounts Receivable , December 31

Credits Sale:
Inventory January 1
Purchase
Less: Inventory , December 31
Cost of Sales
Add: Gross Margin on Sales
Gross Sales during the Year
Less: Cash Sales
Credit Sales

The Answer is letter B

 4,000,000.00
10,600,000.00
(8,400,000.00)
6,200,000.00

4,800,000.00
8,000,000.00
(4,400,000.00)
8,400,000.00
4,200,000.00
12,600,000.00
(20,000,000.00)
10,600,000.00
 Total Merchandise Purchase for the Current Year
less: Inventory, December 31
Cost of Good Sold
Add: Mark up on Cost (.40 x 5,600,000)
Sales (1.40 x 5,600,000)
Less: Collection From Costumers
Accounts Receivable, December 31

The answer is letter B

 7,000,000.00
(1,400,000.00)
5,600,000.00
2,240,000.00
7,840,000.00
(4,000,000.00)
3,840,000.00
 List Price
Less: 1st Trade Discount - 20% (5M x .2)
Total
Less: 2nd Trade Discount - 10% (4M x .1)
Total
Less: 3rd Trade Discount - 5% (3.6M x 0.5)
Gross Final Value

Gross Final Value

Less: Sales Return Originally Billed
Receivables Before Credit Discount
Less: Credit Discount - 4% (2,920,000 x .04)
Net Realizable Value of Accounts Receivable, December 31, 2021

The answer is letter D

 5,000,000.00
(1,000,000.00)
4,000,000.00
(400,000.00)
3,600,000.00
(180,000.00)
3,420,000.00

3,420,000.00
(500,000.00)
2,920,000.00
(116,000.00)
2,803,200.00
 Req 1

The answer is letter A, because the problem says that pitt sold merchandise with a list Price of 5,000,

Req 2

List Price
Less: 1st Trade Discount - 30% (.3 x 5M)
Total
Less: 2nd Trade Discount - 20% ( .2 x 3.5M)
Invoice Price
Less: Cash Discount - 2% ( .02 x 2.8M)
Add:L Reimbursement of Delivery Cost
Total Remittance From Burr

The answer is letter C

old merchandise with a list Price of 5,000,000

5,000,000.00
(1,500,000.00)
3,500,000.00
(700,000.00)
2,800,000.00
(56,000.00)
2,744,000.00
200,000.00
2,944,000.00
 Req 1

Goods Available for Sale 9,000,000.00

less: Ending Inventory (1,500,000.00)
Cost of Good Sold 7,500,000.00

The answer is letter A

Req 2

Cost of Good Sold 7,500,000.00

Add: Markup on Cost (40% x 7.5M) 3,000,000.00
Total Sales 10,500,000.00
Less: Cash Sales (20% x 10.5M) (2,100,000.00)
Sales on Account 8,400,000.00

The answer is letter D

Req 3

Sales on Account 8,400,000.00

Less: Collections (6,000,000.00)
Accounts Written off (50,000.00)
Accounts Receivable 2,350,000.00

Provission for Doubtful Accounts (8.4M x 5%) 420,000.00

Less: Accounts Written Off (50,000.00)
Allowance for Doubtful Accounts 370,000.00

Accounts Receivable 2,350,000.00

Less: Allowance for Doubtful Accounts (370,000.00)
Net Realizable Value 1,980,000.00

The answer is letter A