6.

Short Cut ni Mam

Annual Payment 500,000
Present value of an ordinary annuity of 1 at 12% 5.65
Carrying amount of NR on Dec 31, 2018 P2,825,000

CA = Annual Payment x PV of an ordinary annuity of 1 (iyong hindi pa

bayad)

7.
Date Collection Interest Principal Present
Income (Collection - Value
(PV X 12%) II) (PV-Principal)
12/31/18 2,825,000
12/31/19 500,000 339,000 161,000 2,664,000

Carrying amount of NR on Dec 31,2019 P2,664,000

8. Dec 31, 2018

Present Value of the Notes P2,825,000
Equipment (3M-1M) 2,000,000
Gain P825,000

9. Dec 31,2019
Present Value of the Notes P2,825,000
Interest Rate 0.12
Interest Income 339,000

13.
COGS = (Beg. Inventory + Purchases) - Ending Inventory
= 9,0000,000 - 1,500,000
= 7,500,000

Total Sales = Goods are sold at 40% above cost. (40% + 100%)
= 7,500,000 x 140%
= 10,500,000

Total sales include 20% cash sales and 80% credit sales

Credit Sales = 80% ng Total Sales

= 10,500,000 x 80%
= 8,400,000

The entity established an allowance for doubtful

accounts estimated at 5% of credit sales.

AFDA = 8,400,000 x 5%
= 420,000

Entity wrote off P50 000 of doubtful accounts .

AFDA = 420,000 - 50,000
= 370,000

Net realizable value of accounts receivable

(8,400,000 - 370,000 - 50,000 - 6,000,000)
= 1,980,000