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What amount should be reported as net realizable value of accounts receivable on December 31, 2019?
a. 1,550,000
b. 1,250,000
c.1,300,000
d. 1,500,000
2. Capture Company had the following information for 2018 realting to its accounts receivable:
What is the balance of accounts receivable, before allowance for doubtful accounts, on December 31,
2018?
a. 1,825,000
b. 1,850,000
c. 1,950,000
d. 1,990,000
3. On January 1, 2019, Jovelyn Company’s allowance for doubtful accounts had a credit balance of
P300,000. During 2019, the entity charged P650,000 to doubtful accounts receivable, and unexpectedly
recovered P100,000 of bad debts written off in the prior year.
4. Amega Company prepared an aging of its accounts receivable on December 31, 2019 and determined
that the net realizable value of the accounts receivable was P2,500,000. Additional information is
available as follows:
For the yearended December 31, 2019, what is the uncollectible accounts expense?
a. 230,000
b. 200,000
c. 150,000
d. 100,000
5. Aghast Company sells to wholesale on terms 2/15, net 30. The entity has no cash sales but 50% of the
customers take advantage of the discount. An analysis of the accounts receivable considered collectible
on December 31, 2019 revealed the following:
6. On December 31,2019, Ludicrous Company reported before any year –end adjustments accounts
receivable of P6,000,000 and allowance for doubtful accounts P300,000.
The accounts which have been outstanding over 75 days and have zero probability of collection would
be written off immediately. What is the appropriate balance for the allowance for doubtful accounts on
December 31, 2019?
a. 560,000
b. 660,000
c. 260,000
d. 360,000
7. Bostial Company’s trial balance on December 31, 2019, included the following accounts:
Debit Credit
Allowance for doubtful accounts 5,000
Sales 7,200,000
Sales return 200,000
The entity estimated its uncollectible accounts receivable at 2% of net sales.
What is the amount of doubtful accounts expense that should be reported for 2019?
a. 140,000
b. 145,000
c.135,000
d. 144,000
8. Mischief Company had 15,000 units of product A on hand at January 1, 2019, costing P21 each.
Purchases of product A during the month of January were as follows:
A physical count on January 31, 2019 shows 25,000 units of product A on hand.
What is coat of the inventory on January 31, 2019 under the FIFO method?
a. 585,000 b. 555,000 c. 535,000 d. 525,000
9. The following information has been extracted from the records of Junket Company about one of its
products. The entity uses the perpetual system.
Units Unit Cost Total Cost
Jan. 1 Beginning balance 8,000 70.00 560,000
6 Purchase 3,000 70.50 211,500
Feb. 5 Sale 10,000
Mar. 5 Purchases 11,000 73.50 808,500
Mar. 8 Purchase return 800 73.50 58,800
April 10 Sale 7,000
April 30 Sale return 300
Under the FIFO method, what is the cost of the inventory on April 30?
a. 330,750 b. 315,000 c. 433,876 d. 329,360
10. Amas Company uses the moving average method to determine the cost of its inventory. During
January of the current year, the entity recorded the following phenomena pertaining to its inventory:
Units Unit Cost Total Cost
Balance on Jan. 1 40,000 5 200,000
Sold on Jan. 17 35,000
Purchased on Jan. 28 20,000 8 160,000
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