Problem 14-1

(AICPA Adapted)
In the accrual
he accrual basis income
wia Company reported statement for the current
Daria
revenue of year,
Accounts receivabl
P3,000,000.
Uncollectible
le-January 1
accounts written off 400,000
Accounts receivable December 311during
- uring the year
year 20,000
500,000
TTnder cash basis, what amount
for the current year?
should be reported as revenue

a. 2,900,000
b. 2,880,000
C. 3,000,000
d. 3,120,000

Problem 14-2 (AICPA Adapted)

Zeta Company reported sales revenue of P4,600,000 in the
income statement for the year ended December 31, 2017.

The entity wrote off uncollectible accounts totaling P50,000

during the current year.
2016 2017

1,000,000 1,300,000
Accounts receivable 110,000
accounts 60,000
Allowance for uncollectible 200,000 300,000
Advances from customers
should be reported as sales
cash basis, what amount
nder
for the current year?

a. 4,400,000
b. 4,350,000
C. 4,300,000
d. 4,250,000
 Problem 14-3
(AICPA Adapted)
a service organizoat:
Kew Company, on, had
During 2017,
sales and P3,000,000 in credit sales haa
P200,000 in cash

receivable balances were P400.00

00
The accounts
P485,000 on December 31,
2016 and 2017, respectively. dand
If the entity desires to prepare
a cash basis inoe
com
statement, what amount should be reported as sales fore
for the
current year?

a. 3,285,000
b. 3,200,000
c. 3,115,000
d. 2,915,000

Problem 14-4 (AICPA Adapted)

Spee Company provided the following information for the

current year:

Cash sales
Gross
2,000,000
Returns and allowances
100,000
Credit sales
Gross
3,000,000
Discounts
150,000
On January 1, customers owed P1,000,000. On December 3l,
customers owed P750,000.
The entity used the direct writeoff
bad debts were method for bad debts. NO
recorded in the current
year.
Under cash
basis, what
reported for the current amount of revenue shoula be
year?
a.
5,000,000
b 4,750,000
C. 4,250,000
d. 1,900,000