Problem 10-1.Trade & other Receivables Problem 10-2.

Different Freight Te
Trade AR Non-trade AR Non-Current A 1. FOB Destination, Freight Prepaid
1 ₱ 277,000.00 Sales 1/13
2 ₱ 150,000.00 Acccounts Receivable
3 ₱ 10,000.00 Sales
4 ₱ 30,000.00 Freight Out
5 ₱ 110,000.00 Cash
6 ₱ 15,000.00
7 ₱ 70,000.00 Collections 1/23
8 ₱ 80,000.00 ₱ 220,000.00 Cash
9 ₱ 100,000.00 Sales Discount
Total ₱ 597,000.00 ₱ 135,000.00 ₱ 330,000.00 Accounts Receivable

Question 1: C - P597,000 2. FOB Destination, Freight Collect

Question 2: C - P732,000 (P597,000 + P135,000) Sales 1/13
Acccounts Receivable
Sales
Freight Out
Accounts Receivable

Collections 1/23
Cash
Sales Discount
Accounts Receivable

3. FOB Shipping Point, Freight Prepaid

Sales 1/13
Acccounts Receivable
Sales
Accounts Receivable
Cash

Collections 1/23
Cash
Sales Discount
Accounts Receivable

4. FOB Shipping Point, Freight Collect

Sales 1/13
Acccounts Receivable
Sales
Collections 1/23
Cash
Sales Discount
Accounts Receivable
0-2. Different Freight Terms Problem 10-3. Gross Method and Net Method

₱ 300,000.00
₱ 300,000.00
₱ 5,000.00
₱ 5,000.00

₱ 294,000.00
₱ 6,000.00
₱ 300,000.00

₱ 300,000.00
₱ 300,000.00
₱ 5,000.00
₱ 5,000.00

₱ 289,000.00
₱ 6,000.00
₱ 295,000.00

₱ 300,000.00
₱ 300,000.00
₱ 5,000.00
₱ 5,000.00

₱ 299,000.00
₱ 6,000.00
₱ 305,000.00

₱ 300,000.00
₱ 300,000.00
₱ 294,000.00
₱ 6,000.00
₱ 300,000.00
 Problem 10-4. Computation of Percentage of Bad Debts Expense
Case no. 1:
1. D - 2.25% Solutions:
2. C - P45,000 1 Total Accounts Written Off 325,000.00
3. A - P372,000 Less: Total Recoveries 100,000.00
225,000.00
Divide by: Total Credit Sales 10,000,000.00
Allowance for Doubtful Acc. Percentage 0.0225
113,000.00 400,000.00
40,000.00 2 Credit Sales, 2024 2,000,000.00
45,000.00 Multiply by: Percentage 0.0225
113,000.00 485,000.00 Allowance for Doubtful Accounts 45,000.00
372,000.00
3 Allowance for Doubtful Accounts, Jan. 2024 400,000.00
Add: Recoveries, 2024 40,000.00
Allowance for doubful accounts 45,000.00
485,000.00
Less: Accounts Written Off, 2024 113,000.00
Allowance for Doubtful Accounts, Dec. 2024 372,000.00

Case no. 2:
4. A - 2.50% Solutions:
5. A - P50,000 1 Total Accounts Written Off (20',21',22') 190,000.00
6. A - P25,000 Less: Total Recoveries (20',21',22') 40,000.00
150,000.00
Divide by: Total Credit Sales (20',21',22') 6,000,000.00
Allowance for Doubtful Acc. Percentage 0.025
113,000.00 50,000.00
22,000.00 40,000.00 2 Credit Sales, 2024 2,000,000.00
20,000.00 Multiply by: Percentage 0.025
135,000.00 110,000.00 Allowance for Doubtful Accounts 50,000.00
25,000.00
3 Allowance for Doubtful Accounts, Jan. 2024 50,000.00
Add: Recoveries, 2024 40,000.00
Recoveries, 2023 20,000.00
110,000.00

Accounts Written Off, 2024 113,000.00

Accounts Written Off, 2023 22,000.00
Less: 110,000.00
Allowance for Doubtful Accounts, Dec. 2024 25,000.00
Case no. 3:
7. B - 1.90% Solutions:
8. C - P81,000 1 Total Accounts Written Off (20',21',22',23') 212,000.00
9. C - P27,000 Less: Total Recoveries (20',21',22') 60,000.00
152,000.00
Divide by: Total Credit Sales (20',21',22',23') 8,000,000.00
Allowance for Doubtful Acc. Percentage 0.019
113,000.00 19,000.00
40,000.00 2 Credit Sales, Dec. 2023 1,000,000.00
81,000.00 Multiply by: Percentage 0.019
113,000.00 140,000.00 Allowance for Doubtful Accounts 19,000.00
27,000.00
3 Allowance for Doubtful Accounts 19,000.00
Add: Recovery, 2024 40,000.00
Squeeze/Workback Doubtful Accounts Expense 81,000.00
Less: Accounts Written Off, 2024 113,000.00
Allowance for Doubtful Accounts, 2024 27,000.00

Accounts Receivable, 2024 1,200,000.00

Multiply: Percentage of Bad debts, 2024 0.0225
Allowance for Doubtful Accounts, 2024 27,000.00
 Problem 10-20. Comprehensive Problem

1. Allowance for uncollectible accounts before year-end adjustment on December 31, 2024
a. P200,000

2. Required balance in the allowance for uncollectible accounts on December 31, 2024
c. P209,400

3. Corect bad debt expense for 2024

d. P161,400

4. Net realizable value of accounts receivable at December 31, 2024

b. P2,236,600

5. Collections from customers during 2024

d. P7,490,000

SOLUTIONS

Accounts Receivable Allowance for Doubtf

beg. ar 2,500,000.00 164,000.00 written off written off
cr. sales 7,600,000.00 2,446,000.00 end ar
7,490,000.00 collections
10,100,000.00 10,100,000.00 end

Accounts Receivable 2,446,000.00 Bad Debt Expense

Less: ADA 209,400.00 Allowance for Doubtful Account
AR, net 2,236,600.00
nsive Problem Problem 10-22. Comp

cember 31, 2024 1. Trade accounts receivable at the end of 2024

a. P215,300

ber 31, 2024 2. Allowance for bad debts at the end of 2024
c. P7,052

3. Bad debt expense in 2024

b. P2,052

4. Interest income in 2024

b. P1200

5. Accured interest income in 2024

a. P500

Balance
Allowance for Doubtful Accounts
164,000.00 212,000.00 beg. Account 1 12,000.00
152,000.00 bad debts Account 2 22,000.00
164,000.00 364,000.00 Account 3 Not a Trade Receivable so it
209,400.00 200,000.00 unadjusted Account 4 20,000.00
9,400.00 adjustments Account 5 55,000.00
Account 6 7,500.00
d Debt Expense 9,400.00 116,500.00
Allowance for Doubtful Accounts 9,400.00 Allowance for Doubtful
# Accounts

Bad Debt Expense 2024 A/R, Unadjusted

152,000.00 beg. A/R, Adjusted
9,400.00 aje Difference
161,400.00
Allowance for Doubtful Accounts
end 7,052.00

EM
1-Jan Accounts Receivable 120,000.00
XX
 1-Mar Cash 121,200.00
Accoounts Receivable

1-Dec Acccounts Receivable 100,000.00

XX

SB
1-Jan Notes Receivable
XX

1-Mar Cash
Notes Receivable
Interest Income

1-Dec Notes Receivable

XX

31-Dec Accrued Int. Inco

Interest Income

Accounts Receivable
unadjusted 215,300.00
121,200.00
336,500.00
adjusted 116,500.00

AJE
Notes Receivable
Accounts Receivable

Accounts Receivable
Notes Receivable
Interest Income

Notes Receivable
Accounts Receivable

Accrued Interest Income P500.00

Interest Income
 Problem 10-22. Comprehensive Problem

eivable at the end of 2024 1. The adjusted balance

debts at the end of 2024 2. The adjusted balance

n 2024 3. The adjusted allowan

2024 4. The adjusted balance

come in 2024 5. The adjusting entry t

c. Credit to A

SOLUTIONS
Within 60 days 61-120 Over 120
1-60 days
Accounts not Due Past Due Past Due unadjusted
3,000.00 8,000.00 1,000.00
22,000.00
Not a Trade Receivable so its not Included
10,000.00 10,000.00
2,220.00 52,780.00
7,500.00
27,220.00 68,280.00 11,000.00 10,000.00
1% 2% 5% 50%
136.10 1,365.60 550.00 5,000.00 7,051.70

215,320.00
- 116,500.00
98,820.00 Account #3

wance for Doubtful Accounts

5,000.00 unadjusted
2,052.00 adjustments/BDE

s Receivable 120,000.00
120,000.00
 121,200.00
Accoounts Receivable 121,200.00

nts Receivable 100,000.00

100,000.00

120,000.00
120,000.00

121,200.00
Notes Receivable 120,000.00
Interest Income 1,200.00

100,000.00
100,000.00

500.00
Interest Income 500.00

Accounts Receivable
120,000.00
100,000.00
220,000.00

AJE
120,000.00
Accounts Receivable 120,000.00

121,200.00
Notes Receivable 120,000.00
Interest Income 1,200.00

100,000.00
Accounts Receivable 100,000.00

ued Interest Income P500.00

Interest Income 500.00
 Problem 10-30. Comprehensive Problem

1. The adjusted balance of accounts receivable in the 60 days and below category as of Dec. 31, 2024
c. P930,000

2. The adjusted balance of accounts receivable as of Dec. 31, 2024

d. P1,832,500

3. The adjusted allowance for doubtful accounts as of Dec. 31, 2024

d. P102,825

4. The adjusted balance of the doubtful accounts expense for the year ended Dec. 31, 2024
d. P42,825

5. The adjusting entry to correct the error for customer Danny should include
c. Credit to Accounts Receivable, P7,500

SOLUTIONS
Within 60 days 61-90 days Over 90 days
unadjusted 1,000,000.00 500,000.00 400,000.00
3 - 40,000.00
4 50,000.00
5 20,000.00
Tony - 45,000.00
Boris - 45,000.00
Danny - 7,500.00
Adjusted 930,000.00 492,500.00 410,000.00 1,832,500.00
4% 5% 10%
37,200.00 24,625.00 41,000.00 102,825.00

EM
Accounts Receivable 150,000.00 Advances
Cash 150,000.00 Cash

Cash 50,000.00 Cash

Accounts Receivable 50,000.00

Allowance for Doubtful Accounts

40,000.00 100,000.00 unadjusted
adjustment 102,825.00 42,825.00 BDE
142,825.00 142,825.00
 Bad Debt Expense 42,825.00
Allowance for Doubtful Accounts 42,825.00

Adjusting Entries
1 Advances 150,000.00
Accounts Receivable 150,000.00
2 Accounts Receivable 50,000.00
Other Liabilities 50,000.00
3 Allowance for Doubtful Accounts 40,000.00
Accounts Receivable 40,000.00
4 Accounts Receivable 50,000.00
Sales 50,000.00
5 Accounts Receivable 20,000.00
Sales 20,000.00
Tony Sales 45,000.00
Accounts Receivable 45,000.00
Boris Sales 45,000.00
Accounts Payable 45,000.00
Unsold
Kawhi Correct - No Entry
Danny Sales 7,500.00
Accounts Receivable 7,500.00
30,000/200=150*50

Accounts Receivable
Unadjusted 2,000,000.00 150,000.00 1
2 50,000.00 40,000.00 3
5 20,000.00 45,000.00 Tony
4 50,000.00 45,000.00 Boris
7,500.00 Danny
2,120,000.00 287,500.00
1,832,500.00
150,000.00
150,000.00

50,000.00
50,000.00