11. Using the following information: 12/31/17 Accounts receivable P1,050,000 (90,000) P960,000 Allowance Cash realizable value During 2018, sales on account were P290,000 and collections on account were P172,000. Also, during 2018, the company wrote off P16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at P108,000. The change in the net realizable value from the balance at 12/31/17 to 12/31/18 was a a. P100,000 increase b. P84,000 increase c. P118,000 increase d. P102,000 increase

11. Using the following information: 12/31/17 Accounts receivable P1,050,000 (90,000) P960,000 Allowance Cash realizable value During 2018, sales on account were P290,000 and collections on account were P172,000. Also, during 2018, the company wrote off P16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at P108,000. The change in the net realizable value from the balance at 12/31/17 to 12/31/18 was a a. P100,000 increase b. P84,000 increase c. P118,000 increase d. P102,000 increase

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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The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) 2022 $550,000 2022 2021 4,300,000 4,000,000 7.9 times $540,000 2021 7.5 times 46.2 days 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.
Omega Company prepared an aging of accounts receivable on December 31, 2018 and determined that the net realizable value of the accounts receivable was P2,500,000. Alow ance for uncolectible accounts on January 1 Accounts written off as uncollectible Accounts receivable on December 31 Uncollectible accounts recovery 280,000 230,000 2,700,000 50,000 What is the uncollectible accounts expense for the current year?
The following financial information pertains to SPACE Limited: Accounts receivable at December 31, 2018 $ 900,000 Credit sales for 2019 6,800,000 Cash collection on credit sales during 2019 6,540,000 Allowance for Impairment at December 31, 2018 45,000 Accounts receivable written off on August 31, 2019 60,000 Previously written off accounts receivable was received on September 25, 2019 10,000 An aging analysis estimates uncollectible receivables at December 31, 2019 to be $80,000. Required: (Explanation for each journal entry is NOT required) a. Prepare the journal entry for the accounts receivable written off during 2019. b. Prepare the journal entry for the event occurring on September 25, 2019 c. Prepare the year-end adjusting entry required to record the impairment loss of receivable. Assume the statement of financial position approach is used. d. Explain how the transaction in (c) affects the accounting equation. e. What is the net realizable value of accounts receivable to be…
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7 Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable. The company has the following data for the year: Allowance for Bad Debts, 12/31/19 - credit balance Sales including cash sales Accounts written off as uncollectible during 2020 Cash Sales P 28,000 5,000,000 23,000 500,000 3,500,000 270,000 5,000 Collections from credit sales Accounts Receivable at 1/1/20 Uncollectible accounts recovery during 2020 What is Nissan's bad debts expense that shall be presented in its 2020 statement of financial performance?
Use the following financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Ending Accounts Receivable Year Net Credit Sales 2017 $690,430 $335,250 2018 705,290 364,450 2019 770,500 406,650 A. Compute the accounts receivable turnover ratios for 2018 and 2019. Round your answers to two decimal places. 2018 times 2019 times B. Using the accounts receivable turnover, choose the statement that most closely describes the company's management of its receivables. a. The company's lending policies may be too strict. b. Collection efforts are not aggressive enough. There may be uncollectable receivables affecting the beginning and ending C. balances. d. All of the above statements may be correct. a b d
What is the net realizable value of accounts receivable at the end of year, given the following information:Balance in Accounts Receivable at end of year, $104,000Balance in Allowance for Doubtful Accounts, beginning of year, $2,000 debitWrite-offs during year, $5,000Bad debt expense for year, $9,000Recoveries during year of accounts previously written-off, $2,000
For the next two (2) questions: Selected balances related to the accounts receivable of ABC Company as of December 31 are presented below: 2022 2021 Accounts receivable, net P5,450,000 1,450,000 P3,500,000 750,000 Allowance for doubtful accounts During the year, sales amounted to P25,000,000, 20% of which are cash sales. Write-offs of uncollectible accounts amounted to P550,000 while recoveries of accounts previously written off totaled P300,000. 1. How much is the bad debt expense recognized in 2022? 2. What is the total amount of cash collected from customers in 2022? For the next two (2) questions: DEF Co. has provided the following data: December 31, 2021 P1,500,000 950,000 December 31, 2022 P1,400,000 980,000 Inventory Accounts payable For 2022, cost of goods purchased was P8,300,000 while cash purchases of inventory amounted to P1,300,000. 3. How much is the cost of goods sold in 2022? 4. What is the total amount of cash paid to suppliers in 2022?
The following is select financial statement information from Vortex Computing: Year Net Credit Sales Ending Accounts Receivable 2018 $1,557,200 $398,000 2019 $1,755,310 $444,400 2020 $1,865,170 $500,780 Compute the accounts receivable turnover ratios and the number of days’ sales in receivables ratios for 2019 and 2020 (round answers to two decimal places): 2019 Accounts Receivable Turnover = ["", "", "", ""] times. 2019 Days' Sales in Receivables = ["", "", "", ""] days. 2020 Accounts Receivable Turnover = ["", "", "", ""] times. 2020 Days' Sales in Receivables = ["", "", "", ""] days.
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