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Problem 1
Alfonso Co. has an account receivable balance amounting 233,500 at the start of
2022. During the year, credit sales returns amount to 1,500,000 while sales returns
amount to 40,000. Accounts written off amounted to 34,000 .

The entity estimated that future sales return will amount to 45,000 by Dec.31. Also
estimate uncollectible accounts per aging of receivables amounted to 32,000.

Collections were made on accounts receivable and has credited all trade
receivable subsidiary legers by a total of 1,265,000.

HOW MUCH IS THE NET REALIZABLE VALUE OF ACCOUNTS RECEIVABLE TO BE

PRESENTED IN DEC.31, 2022 STATEMENT OF FINANCIAL POSITION?
Problem 2
TMD Company use the allowance method of accounting for
uncollectible accounts. For receivable aging, it was estimated that 6%,
20% & 30% will not be collected anymore for receivables aging 0-60
days, 61-120 days, and over 120 days, respectively. These all amounts
to 8,000,000, 4,000,000 an 3,000,000. Net credit sales for the year
amounted to 60,000,000 and that the balance before adjustment of
the allowance for uncollectible accounts amount to 100,000 credit.

What amount should be recognize in the adjusting entries as

uncollectible accounts expense for the current year?
Problem 3
Aeronautics Company provided the following information.
DEC. 31, 2021 DEC.31, 2022
ACCOUNTS RECEIVABLE 3,092,000 3,370,000
NET REALIZABLE VALUE 2,980,000 3,276,000

During the year, the firm recovered past written-off accounts

amounting to 192,000 and written-off 286,000 accounts. How much is
the uncollectible accounts expense for the year ended Dec.31, 2022?
At the end of the discussion, you should be able to:
When can the company say the inventory is there?