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2ND SESSION
FINANCIAL ASSET : CASH RECEIVABLES
TEACHING ASSISTANTS’ TEAM
No Description Classification
2. Government bonds
4. Cash in bank
8. Deposits in transit
1
period.)
Dec 29 Legler Co. notifies Sanford that it is bankrupt and will pay only 10% of
its account. Give the entry to write off the uncollectible balance
using the allowance method. (Note: First record the increase in the
receivable on July 11 when the discount period passed.)
Instructions
Prepare all necessary entries in general journal form for Sanford SA.
Instructions
Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary
journal entries for Arden Farm Equipment Company for the entire term of the note.
Instructions
a. Prepare the journal entry on July 1, 2022, for SEK Group to record the sale of
receivables without recourse.
b. Prepare the journal entry on July 1, 2022, for Mays Finance to record the
purchase of receivables without recourse.
2
Tosca Corporation operates in an industry that has a high rate of bad debts. Before
any year-end adjustments, the balance in Tosca's Accounts Receivable was
$850,000 and Allowance for Expected Credit Loss (ECL) had a credit balance of
$75,000. The year-end 2022 balance reported in the statement of financial position
for Allowance for ECL will be based on the aging schedule shown below.
The company’s policy is to write-off receivables that have been outstanding for
more than 75 days. After the implementation of PSAK 71/IFRS 9, the company must
re-assess their outstanding receivables in 2022 by new accounting standard policy.
Instructions:
a. What is the appropriate balance for Allowance for ECL at year-end 2022?
b. Show how accounts receivable would be presented on the statement of financial
position.
c. What is the dollar effect of the year-end bad debt adjustment on the before-tax
income?
2022 5.000
2023 15.000
3
2024 75.000
2025 105.000
Total 200.000
Instructions:
a. What is the amount of impairment as of December 31, 2022? How can PT Bank
BTC have objective evidence that PT HS has financial difficulties? Prepare the journal
entry!