Professional Documents
Culture Documents
RECEIVABLES
Problem 1
ADA, beginning 120,000
Bad debts expense 160,000
Writeoffs (80,000)
ADA, ending 200,000
NRV of AR 2,000,000
Gross amount of AR 2,200,000
Problem 2
Installment accounts due in 2024 430,000
Due from regular customers 990,000
Accounts receivable - current 1,420,000
Problem 3
Cost of goods sold (320,000-70,000) 250,000
Sales rate 140%
Sales on account/accounts receivable 350,000
Collection -198,000
Correct accounts receivable 152,000
Problem 4
1. 1.5% of net credit sales
Net credit sales (P10,000,000 - P70,000) 9,930,000
Rate 1.50%
Doubtful accounts expense 148,950
Allowance for doubtful accounts, Jan. 1 40,000
Accounts written off -120,000
Allowance for doubtful accounts, Dec. 31 68,950
2. 7.5% of AR
Accounts receivable, Dec. 31 2,680,000
Rate 7.50%
Allowance for doubtful accounts, Dec. 31 201,000
Allowance for doubtful accounts, Jan. 1 (40,000)
1
Accounts written off 120,000
Doubtful accounts expense 281,000
Problem 5
Net realizable value 1,050,000
Allowance for doubtful accounts, Dec. 31
Allowance for doubtful accounts, Jan. 1 75,000
Doubtful accounts expense 120,000
Accounts written off -50,000 145,000
Gross accounts receivable, Dec. 31 1,195,000
Problem 6
Allowance for doubtful accounts, 2023 200,000
Allowance for doubtful accounts, 2022 150,000
Accounts written off -205,000 -55,000
Doubtful accounts expense 255,000
Note: collection (recovery) of written off account is recognized as income.
Problem 7
1 Allowance for doubtful accounts, Jan. 1 143,000
Recorded doubtful accounts expense (P15M x 3%) 450,000
Accounts written off -140,000
Additional writeoff -120,000
Allowance for doubtful accounts, Dec. 31, unadjusted 333,000
2 Category Uncollectible
November-December (P2,160,000 x 2%) 43,200
July-October (P1,300,000 x 10%) 130,000
January-June (P840,000 x25%) 210,000
Prior to Jan. 1 (P180,000 x 70%) 126,000
Required allowance/ADA, end 509,200
2
Problem 8
White's books
03-Jan Cash 2,100,000
Commission expense 450,000
Receivable from factor 300,000
Allowance for doubtful accounts 150,000
Accounts receivable 3,000,000
31-Jan Cash 250,000
Receivable from factor 250,000
Green's books
03-Jan Accounts receivable 3,000,000
Cash 2,100,000
Commission Income 450,000
Client retainer 300,000
Allowance for doubtful accounts 150,000
31-Jan Cash 2,500,000
Accounts Receivable 2,500,000
Problem 9
1 Original note 4,500,000
Payment applied to principal: [(3.4M-160,000) - (4.5M x 1.25%)] (3,183,750)
Note payable from assignment 1,316,250
Note payable from pledging 400,000
Note payable, Dec. 31 1,716,250
2 AR assigned 5,000,000
Face value collected (3,400,000) 1,600,000
Note payable, Dec. 31 (1,316,250)
Equity on assigned accounts 283,750
3
Problem 10
Receivable Note
Beginning balance 6,000,000 4,800,000
Collection (1,800,000) (1,782,000)
Writeoffs (80,000)
Sales allowance (20,000)
Balance, Feb. 28 4,100,000 3,018,000
Problem 11
Principal 5,000,000
Interest 375,000
Discount (376,250)
Proceeds 4,998,750
Problem 12
PV of note 3,691,131
Interest
Date Income Cash Receipt Amortization Carrying value
4
1/1/23 3,691,131
Problem 13 5%
Present
1 Date Principal Interest Total PV factor value
5
4.5%
Interest Carrying
Date income Cash receipt Amortization amount
01/01/2022 6,093,570
Problem 14
PV of note: n=15,
1 i=3%
2,488,501.0
Oct. 1 , 2023 250,000.00 79,762.17 0
6
3 Installment Interest Carrying
Income Amount
2,488,501.0
Oct. 1 , 2023 250,000.00 79,762.17 0
Problem 15
1 From sale of plant:
Balance, Dec. 31, 2023 2,000,000
Installment to be paid on Apr. 1, 2024 (1,000,000) 1,000,000
From officer 800,000
From sale of equipment:
Present value of note (P400,000 x 0.79719) 318,876
Amortization of discount (P318,878 x .12 x 9/12) 28,699 347,575
From sale of land:
Principal 1,400,000
Current portion
Installment, July 2023 451,250
Interest (P1,400,000 x .11) (154,000) (297,250) 1,102,750
Total noncurrent notes receivable, Dec. 31, 2023 3,250,325
7
2 From sale of plant 1,000,000
From sale of land 297,250
Current portion of notes receivable 1,297,250