ANSWERS TO ASSIGNMENT – ACCOUNTS RECEIVABLE

PROBLEM 4-2

1 Accounts Receivable - beg 600,000.00

Charge sales 6,000,000.00
Total 6,600,000.00
Less: Collections from Customers 5,300,000.00
Writeoff 35,000.00
Merchandise Returns 40,000.00
Allowance to customers 25,000.00 5,400,000.00
Accounts Receivable - end 1,200,000.00

2 Subscriptions Receivable 150,000

Deposit in Contract 120,000
Claims Receivable 60,000
Advances to employees 10,000
Advances to affiliates 100,000
Advances to suppliers 50,000
Accounts Receivable 490,000

3 Accounts Receivables 1,200,000

Claims Receivable 60,000
Advances to suppliers 50,000
Advances to employees 10,000
TRADE AND OTHER RECEIVABLES 1,320,000

PROBLEM 4-3

1 FOB Destination and Freight Collect

Date of
Sale
Accounts Receivable 500,000
Freight Out 10,000
Sales 500,000
Allowance for Freight Charges 10,000

Date of Payment
Cash 475,000
Sales Discount 15,000
Allowance for freight charges 10,000
Accounts receivable 500,000
 2 FOB Destination and Freight Prepaid

Date of
Sale
Accounts Receivable 500,000
Freight Out 10,000
Sales 500,000
Cash 10,000

Date of Payment
Cash 485,000
Sales Discount 15,000
Accounts receivable 500,000

3 FOB Shipping Point and Freight Collect

Date of
Sale
Accounts Receivable 500,000
Sales 500,000

Date of Payment
Cash 485,000
Sales Discount 15,000
Accounts receivable 500,000

4 FOB Shipping Point and Freight Prepaid

Date of
Sale
Accounts Receivable 510,000
Sales 500,000
Cash 10,000

Date of Payment
Cash 495,000
Sales Discount 15,000
Accounts receivable 510,000

PROBLEM 4-4

Accounts receivable 4,000,000

Sales 4,000,000

Cas
h 1,470,000
Sales Discount 30,000
Accounts Receivable 1,500,000
 Cas
h 1,000,000
Accounts Receivable 1,000,000

Sales Returns 100,000

Accounts Receivable 100,000

Sales Returns 20,000

Allowance for sales returns 20,000

PROBLEM 4-5

Accounts Receivable 4,500,000

Sales 4,500,000

Cash 4,410,000
Sales Discount 90,000
Accounts Receivable 4,500,000

Cash 4,500,000
Accounts Receivable 4,500,000