This Study Resource Was: and Included As Part of "Trade and Other Payables"

Chapter 10
Problem 10-1 (Page 315)

A. Accounts receivable 775,000
Notes receivable 100,000
Installments receivable 300,000
Advances to supplier 150,000
Advances to subsidiary 400,000
Claims receivable 15,000
Subscription receivable 300,000
Accrued interest receivable 10,000
Customer’s credit balance 30,000
Advances from customers 20,000
Receivable 2,000,000
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B. Accounts receivable 775,000
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Allowance for doubtful accounts (50,000) 725,000
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Notes receivable 100,000
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Installment receivable 300,000
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Advances to suppliers 150,000
Claim receivable
rs e 15,000
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Subscription receivable 300,000
Accrued interest receivable 10,000
Total trade and other receivables 1,600,000
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Note 1: The advances to subsidiary should be classified as non-current and presented as long-term investment.
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Note 2: The customers' credit balances and advances from customers should be classified as current liabilities
and included as part of "trade and other payables".
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A. Accounts receivable - January 1 P 600,000
Charge sales 6,000,000
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Total 6,600,000
Less: Collections from customers 5,300,000
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Write-off 35,000
Merchandise returns 40,000
Allowances to customers 25,000 5,400,000
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Accounts receivable - December 31 1,200,000
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B. Subscription receivable 150,000
Deposit on contract 120,000
Claim receivable 60,000
Advances to employees 10,000
Advances to affiliates 100,000
Accounts receivable 490,000
C. Accounts receivable 1,200,000

Claim receivable 60,000
Advances to employees 10,000
Total trade and other receivable 1,320,000
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Accounts receivable - customers (7,800,000 + 400,000) 8,200,000
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Allowances for doubtful accounts (200,000)
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Accounts receivable - officers 500,000
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Debit balances - creditors 300,000
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Problem 10-8 A
Accounts receivable 3,500,000
Trade installment receivable (850,000 - 50,000) 800,000
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Accounts receivable from officers 150,000

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Accounts on which post-dated checks are held 200,000

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Problem 10-9 B
Inventory - January 1 4,800,000
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Purchases 8,000,000
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Goods available for sale 12,800,000

Inventory - December 31 (4,400,000)
Cost of goods sold 8,400,000
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Gross margin on sales 4,200,000

Gross sales 12,600,000
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Cash sales (2,000,000)

Credit Sales 10,600,000
Accounts receivable - January 1 4,000,000
Total 14,600,000
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Accounts receivable - collected 8,400,000

Problem 10-10 A
Trade accounts receivable 2,000,000
Allowances for doubtful accounts (100,000)
Claims receivable 300,000
Problem 10-11 B
Credit sales 5,500,000
Collections from customers (5,000,000)
Sales returns (150,000)
Accounts written off (100,000)
Allowance for doubtful accounts (250,000)
Allowance for sales returns (50,000)
Net realizable value 1,250,000
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Problem 10-12 A
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Credit sales 5,400,000
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Total 6,700,000
Collection from customers 4,750,000
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Acccounts written off
rs e 125,000 (4,875,000)
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Problem 10-13 C
Accounts receivable (Squeeze) 6,700,000
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Allowance for doubtful accounts (900,000 - 200,000) (7,000,000)

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Net realizable value 6,000,000

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Problem 10-14 B
Allowance - January 1 300,000
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Doubtful account expense 650,000

Recovery of accounts written off 100,000
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Total 1,050,000
Allowance - December 31 600,000
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Problem 10-15 D
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Allowance - January 1 280,000

Doubtful account expense (Squeeze) 100,000
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Total 430,000
Problem 10-16 D
Allowance - December 31, 2017 900,000
Doubtful account expense 160,000
Total 1,060,000
Accounts written off (Squeeze) (60,000)
Allowance - December 31 1,000,000
Problem 10-17 B
Only the bad debt expense decreases working capital.
The write-off does not affect anymore the working capital because the effect is offsetting.
Problem 10-18 A
Allowance - 12/31/2017 (4,800,000 - 4,725,000) 75,000
Doubtful account expense (Squeeze) 195,000
Total 310,000
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Problem 10-19 Problem 10-20 Problem 10-21 Problem 10-22
1D 1C 1C 1A
2D 2A 2D 2A
3D 3D 3C 3A
4A 4C 4A 4D
5D 5C 5C 5C
6D 6C
7D 7D
8C
9A
10 C
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Chapter 10

Problem 10-1 (Page 315)

Problem 10-2 (Page 316)

Accounts receivable - December 31 1,200,000

C. Accounts receivable 1,200,000

Problem 10-7 (Page 318)

Accounts receivable from officers 150,000

Accounts on which post-dated checks are held 200,000

Total trade and other receivable 4,650,000

Goods available for sale 12,800,000

Gross margin on sales 4,200,000

Cash sales (2,000,000)

Accounts receivable - collected 8,400,000

Allowance for doubtful accounts (900,000 - 200,000) (7,000,000)

Net realizable value 6,000,000

Doubtful account expense 650,000

Allowance - January 1 280,000

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