l8:16 ..*A 58%[Template] E.DEFERRALSExercise 2 - 2The preliminary trial balance of Tagum Traders, owned by Merry Chris Ceniza as of December31, 20A showed in part the Accounts Receivable and its related Estimates UncollectibleAccounts:DebitCreditP 300,000Accounts ReceivableEstimated Uncollectible AccountP 4,0001. If at the end of the year, the Estimated Uncollectible Account is to be provided at 3% of itsoutstanding receivable, what would the amount of adjustment be?2. What is the required adjusting entry on December 31, 20A?3. What is the Estimated Realizable Value of the Accounts Receivable as of December 31, 20A?4. If the Estimated Uncollectible Account should be 'increased by" 2% of the outstandingreceivable account, what should be the adjusting entry needed?5. If the Estimated Uncollectible Account should be "increased to" 2% - of the outstandingreceivable account, what should be the adjusting entry needed?Exercise 3. Preparation of Adjusting Journal EntriesFrom the following given data, prepare adjusting journal entries for the year ended December 31,20A:1) Purchase of supplies for P3,000. At the end of the year, P1,000 cost of supplies were actuallyused. Expense method was used in payment of supplies,2) A P48,000 6%, 120-day note was received from a client dated Nov. 1, 20A. The interest wasnot yet collected at the end of the accounting period.3) Before adjustments, the balance of laundry supplies inventory was P35,000 Physical count ofsupplies inventory was P15,0004) An office equipment was acquired on May 31, 20A for P150,000. The office equipment hasan estimated life of 5 years without scrap value.5) A copying machine was rented on November 30, 20A at P1.00/copy of production. It reportedto have produced 300 copies as of December 31, 20A. No payment was made as of this date.6) Signed an advertising contract on December 1, 20A with a radio station for P3,500. Thecontract will commence upon payment on December 15, 20A and will terminate on January 15,208. Expense method is used in recording prepayment.7) Supplies Inventory showed a balance of P40,000 as of December 31, 20A. During the year,P25,000 cost of supplies was purchased and at the end of December 31, 208, P20,000 werefound to be on hand.()II *... 8:16 ןוה ווהA 58%[Template] E.DEFERRALSExercise 1-3On July 15, 20A, Hilnora Gregorio collected in advance cash of P48,000 from a tenant of herbuilding. This represents rental which cover from the period August 1, 20A to Augur 1, 20C (twoyear contract)1. How much is the earned portion of the rental collected in advance for the year ended,Dec. 31, 20A.2. How much is the unearned portion of the rental collected in advance as of Aug. 1, year200.3. Assuming that 'Income Method" or Rent Income was used in recording the pre-collection,what would be the necessary adjusting entry on Dec. 31, 20A?4. Assuming the "Liability Method" or Unearned Rent Income was credited upon receipt ofcash, what is the adjusting entry needed on December 31, 20A?Exercise 2Exercise 2 -1On September 1, 20A, Maria Theresa C Apostol, owner of Cateel Fitness Centre paid an advancerental on a space of the building it occupies in the amount of P84,000. This covers the periodfrom September 1, 20A to September 1, 20B and the accounting period ends on December 31,20A.Q-1If Asset Method or Real Approach is used in recording the prepayment, what is yourjournal entry on September 1, 20A?If Expense Method or Nominal Approach is used in recording the prepayment, what isyour journal entry on September 1, 20A?Q-2.Q-3. How much of the P84,000 advanced rental payment will expire or will be expensed at theend of each month?Q4. How many months will cover the expense portion?fromtoQ5.How many months will cover the asset portion?fromtoQ6.How much of the P84,000 prepayment will be considered as Expense?as Asset?Q7.If Asset Method or Real Approach is used in recording the prepayment, what is youradjusting journal entry on December 31, 20A?Q7.Q8 If Expense Method or Nominal Approach is used in recording the prepayment, what is youradjusting journal entry on December 31, 20A?Q-9 Regardless of what method is used in recording the prepayment,a) How much amount of Prepaid Rent account that will be shown in the Balance Sheet asof December 31, 20A?b) How much amount of Rent Expense account that will be shown in the Income Statementfor the period ended?Exercise 2 - 2The preliminary trial balance of Tagum Traders, owned by Merry Chris Ceniza as of December31, 20A showed in part the Accounts Receivable and its related Estimates UncollectibleAccounts:

“Since you have posted a many question with multiple sub-parts, we will solve first question with…

1. If at the end of the year, the Estimated Uncollectible Account is to be provided at 3% of its outstanding receivable, what would the amount of adjustment be? 2. What is the required adjusting entry on December 31, 20A? 3. What is the Estimated Realizable Value of the Accounts Receivable as of December 31, 20A?

1. If at the end of the year, the Estimated Uncollectible Account is to be provided at 3% of its outstanding receivable, what would the amount of adjustment be? 2. What is the required adjusting entry on December 31, 20A? 3. What is the Estimated Realizable Value of the Accounts Receivable as of December 31, 20A?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $752. During the year, previously written off accounts of $141 are reinstated and accounts totaling $710 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be a.$183 b.$710 c.$141 d.$752
42) Identify the term, which is used for the full payment is due on the 15th of the month following the invoice date from the following? a. 15MFI b. 1/10 c. 2/10 d. 3/EOM
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $950,000, Allowance for Doubtful Accounts has a credit balance of $8,500, and sales for the year total $4,280,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $29,800. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
A 1.
Hi,I am having a terrible time trying to understand when the balance in the allowance for doubtful account is involved in the final answer, and when it is not. Will you please explain why the answers are what they are in the attachment?
A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: $1300. Days Outstanding 1-30 days 2% 31-60 days 5% 61-90 days 10% Over 90 days 52% Before the year-end adjustment, the credit balance in Allowance for Uncollectible Accounts was $1100. Under the aging-of- receivables method, the Uncollectible-Account Expense at year-end is: $9390. $10,490. Accounts Receivable $8290. Est. Percent Uncollectible $65,000 $45,000 $22,000 $7000
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Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $670,000; Allowance for Doubtful Accounts has a debit balance of $6,000; and sales for the year total $3,020,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $29,400. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. %24 %24 %24 %24 %24
Before any adjustments, Snow Company had an end of the year accounts receivable balance of $225,000 and the allowance for uncollectible accounts had a $800 credit balance. An analysis of accounts receivable determines that the allowance for uncollectible accounts should be 4% of accounts receivable. The adjusting entry would include a credit to Allowance for Uncollectible Accounts of: O A. $8,000. O B. $9,800. OC. $9,000. $8,200. OD.
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The estimated loss from uncollectible accounts can be based on the net credit sales for the year or the ____________________ balance at the end of the year.
Allowance for doubtful accounts has a credit balance of $9000 at the end of the year, before adjustments. Sales for the year amounted to $1740000, and sales returns and allowances amounted to $63000. If uncollectible accounts expense is estimated at 2% of the net sales, the amount of the appropriate adjusting entry will be (nearest whole dollar)