Additional Problems AR ADA

ACCOUNTS RECEIVABLE
Beginning Balance 1,300,000

Credit sales / charge sales 5,400,000
Reestablished AR for previously
written off
Ending Balance 1,825,000
Entries for collection of accounts previously written off

AR
ADA or compound entry
To reestablish AR CASH
ADA
CASH
AR
To record collection
AR - Beg.
Add: Credit Sales
Total
Less: Collection
Sales Returns
Write off
AR - End
Less: Allowance for Sales return
Allowance for Uncollectible Accounts
Net Realizable Value
AR - Beg.
Add: Credit Sales / Sales on Account
Total
Less: Collections received to settle accounts
Discounts taken by customers
Notes received to settle accounts
Sales Returns
Write off
AR - End
Less: Allowance for Doubtful Accounts
ANSWER: 8,800,000
8,800
REPORTED
Inventory -beg
Add: Purchases
Cost of goods available for sale
Less: Inventory End
Cost of goods sold
Add: Gross margin on sales
Total Sales
Less: Cash sales
Credit sales / Sales on accounts
Add: AR - Beg.
Less: Collection
AR - End (Dec. 31)
ACCOUNTS RECEIVABLE
Beginning Balance 1,200,000
written off 10,000
ACCOUNTS RECEIVABLE
Beginning Balance (530k + 30k) 560,000
written off 10,000
Ending Balance 595,000

ACCOUNTS RECEIVABLE
Beginning Balance 950,000
written off 80,000
ALLOWANCE FOR DOUBTFUL ACCOUNTS
Written off accounts 50,000

ANSWER: 940,000
ANSWER: 4,650,000
AR - Beg.
Add: Reestablished AR for previously written off
Total
Discounts taken by customers
Collection of previously written off account
Collections of pledged accounts
AR - End
Less: Allowance for Doubtful Accounts (9k +5K+ 26k)
DAE 26K AR 5K
ADA 26K ADA 5K
Inventory -beg
Add: Purchases
Cost of goods available for sale
Less: Inventory End
Cost of goods sold
Add: Gross margin 40% of cost
Total Sales
Less: Cash sales 20% of total sales
Credit sales / Sales on accounts 80% of total sales
Add: AR - Beg.
Less: Collection of AR
Writeoff
AR - End (Dec. 31)
Less: Allowance for Doubtful Accounts (5% of 8.4M))

(420k-50k)
Write-offs (2016-2019)
Less: Recoveries (2017-2019)
Net bad debt losses
Divided by Credit Sales (2016 - 2019)
Bad debt rate for 2019
Net bad debt losses
Multiplied by: AR -end
ADA - end

Multiplied by: AR -end
ADA - end
9,000,000 X 2% = 180,000 Interim provision
DAE 180,000
ADA
AGING
Nov-Dec 2,000,000 x 2%
Jul - Oct 600,000 x 10%
Jan. - June 400,000 x 25%
Prior to Jan. 1 (200,000 - 60,000) x 75%
ADA PER AGING
ADA - Beginning
Add: Provision for DAE (SQUEEZE)
Recovery of previously written off
Total
Less: Write off (90k + 60k)
ADA - Ending
Required DAE 320,000
Interim DAE 180,000
Adjustment at year-end 140,000
DAE 140,000
ADA
Net bad debt losses
Multiplied by: 2020 Credit sales
DAE 2020
ADA - Beginning
Add: Provision for DAE
Total
Less: Write off
ADA - Ending
AR - Beg.
Total
Write off
AR - End
2,800,000 x 1% = 28,000
0-30 3,000
31-90 4,000
91-180 12,000
over 180 20,000
ADA per aging 39,000
ADA - Beginning
Total
Less: Write off
ADA - Ending
1-60 600,000
61-180 400,000
181-360 450,000
> 1 year 200,000
ADA per aging 1,650,000
ADA - Beginning
Total
Less: Write off
ADA - Ending
should be provision 800,000
Interim provision 600,000
year-end adjustment 200,000
DAE 200K
ADA 200K
AR - End 9,900,000
Less: ADA per aging (1,650,000)
NRV 8,250,000
Chicken 1,500,000
Landmark 2,000,000
Others 225,000
impairment loss 3,725,000
2,717,000
AR - Beg.
Total
Sales return
Write off
AR - End
Allowance for sales return
Allowance for sales discount
3,275,000
ADA - Beginning
Add: Provision for DAE
Total
Less: Write off
ADA - Ending
AR -end
ADA end
NRV
UNTS RECEIVABLE
Collection 4,750,000
Collection of previously written
off account
ritten off
650,000
2,700,000
3,350,000
(2,150,000)
(75,000)
(40,000)
1,085,000
(50,000)
(110,000)
925,000
-
3,600,000
3,600,000
(2,450,000)
(40,000)
(400,000)
(15,000)
(25,000)
670,000
(90,000)
580,000
4,800,000
8,000,000
12,800,000
(4,400,000)
8,400,000
4,200,000
12,600,000
(2,000,000)
10,600,000
4,000,000
(8,400,000)
6,200,000
UNTS RECEIVABLE
Collection (7M - 10k) 6,990,000

off account 10,000
UNTS RECEIVABLE
Collection (5.2M - 50k) 5,150,000

off account -
Sales Returns 25,000
Sales Allowances 15,000
UNTS RECEIVABLE
Collection 3,024,000
off account 80,000
Sales Returns & Allowances 250,000
Sales Discounts 126,000
OR DOUBTFUL ACCOUNTS
Beginning Balance 100,000
Doubtful Accounts Expense 70,000
written off 80,000
written off 80,000
Ending Balance 200,000

450,000
5,000
4,800,000
5,255,000
(3,920,000)
(80,000)
(5,000)
(150,000)
-
1,100,000
(40,000)
1,060,000
CASH 5K
AR 5K
-
9,000,000
9,000,000
(1,500,000)
7,500,000
3,000,000
10,500,000
(2,100,000)
8,400,000
-
(6,000,000)
(50,000)
2,350,000
(370,000)
1,980,000
170,000
(10,000)
160,000
10,000,000
1.60%
0.016
0.02
253,000
(15,000)
238,000
14,000,000
1.70%
1.60%
1,250,000
20,000
1.70%
2,000,000
34,000
180,000
40,000
60,000
100,000
105,000
305,000
120,000
320,000
15,000
455,000
(150,000)
305,000
140,000
855,000
(95,000)
760,000
38,000,000
2.00%
15,000,000
300,000
80,000
300,000
40,000
420,000
(310,000)
110,000
2,070,000
40,000
15,000,000
17,110,000
(14,000,000)
(310,000)
(40,000)
2,760,000
(110,000)
2,650,000
28,000
31,000
7,000
66,000
(27,000)
39,000
1,000,000
800,000
50,000
1,850,000
(200,000)
1,650,000
credit
1,400,000
20,000
5,300,000
6,720,000
(4,600,000)
(170,000)
(120,000)
(20,000)
1,810,000
(90,500)
(75,000)
(10,000)
1,634,500
60,000
226,900
12,000
298,900
(78,000)
220,900
1,470,000
(220,900)
1,249,100

Additional Problems AR ADA

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Additional Problems AR ADA

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ACCOUNTS RECEIVABLE

Beginning Balance 1,300,000

Ending Balance 1,825,000

Entries for collection of accounts previously written off

Ending Balance 2,180,000

Ending Balance 595,000

Ending Balance 1,300,000

ALLOWANCE FOR DOUBTFUL ACCOUNTS

Written off accounts 50,000

Less: Allowance for Doubtful Accounts (5% of 8.4M))

Bad debt rate for 2020

Collection (7M - 10k) 6,990,000

Collection (5.2M - 50k) 5,150,000

Ending Balance 200,000

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