14. ABASE HUMILIATE Co. is currently preparing its combined financial statements for the year ended December 31, 20x1. As of this date, the "Investment in branch" account has a balance of P380,000 while the "Home office" account has a balance of P528,000. The following information has been gathered: (a) The home office allocated unpaid utilities expenses amounting to P40,000 to the branch which the branch did not record in full. Instead, the branch sent a wrong adjusting memo to the home office reducing the charge by P10,000 and setting up a liability for the remaining amount. (b) The home office erroneously credited the branch for a return of shipment of merchandise worth P100,000. The branch did not make any return of merchandise. (c) The branch mistakenly received a copy of the home office correcting entry for item (b) above dated January 3, 20x2 and entered a credit in favor of the home office on December 31, 20x1. (d) The branch mistakenly sent the home office a debit memo amounting to P12,000 for an apparent remittance of collections which did not happen. The home office did not record the debit memo. REQUIREMENT: How much is the net adjustment to the "Home office" account? increase (decrease)

14. ABASE HUMILIATE Co. is currently preparing its combined financial statements for the year ended December 31, 20x1. As of this date, the "Investment in branch" account has a balance of P380,000 while the "Home office" account has a balance of P528,000. The following information has been gathered: (a) The home office allocated unpaid utilities expenses amounting to P40,000 to the branch which the branch did not record in full. Instead, the branch sent a wrong adjusting memo to the home office reducing the charge by P10,000 and setting up a liability for the remaining amount. (b) The home office erroneously credited the branch for a return of shipment of merchandise worth P100,000. The branch did not make any return of merchandise. (c) The branch mistakenly received a copy of the home office correcting entry for item (b) above dated January 3, 20x2 and entered a credit in favor of the home office on December 31, 20x1. (d) The branch mistakenly sent the home office a debit memo amounting to P12,000 for an apparent remittance of collections which did not happen. The home office did not record the debit memo. REQUIREMENT: How much is the net adjustment to the "Home office" account? increase (decrease)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At the beginning of the current period, Waterway Industries had balances in Accounts Receivable of $190,800 and in Allowance for Doubtful Accounts of $9,670 (credit). During the period, it had net credit sales of $730,800 and collections of $749,620. It wrote off as uncollectible accounts receivable of $7,511. However, a $3,339 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $23,000 at the end of the period. (Omit cost of goods sold entries.) (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when…
At the beginning of Year 3 Omega Company had a $75,000 balance in its accounts receivable account and a $10,400 balance in allowance for doubtful accounts. During Year 3 Omega experienced the following events. (1) Earned $256,000 of revenue on account. (2) Collected $248,000 cash from accounts receivable. (3) Wrote off $8,500 of accounts receivable as uncollectible. Omega estimates uncollectible accounts to be 4% of receivables. The December 31, Year 3 ending balance in the allowance for doubtful accounts account (balance after expense recognition) is: Multiple Choice $2,980. $8,500. $2,660. $3,300.
The DARARI Corporation's Account Receivable Control Accounts had balance of P2,865,000, which the accountant had a difficulty in identifying the classification of accounts either current or non-current. The details of the accounts receivable is presented below as of December 31, 2019: Accounts known to be worthless 37,500.00 Advance payments to creditors or purchase order 150,000.00 Advances to affiliated companies 375,000.00 Customer's accounts reporting credit balances arising from sales return (225,000.00) Interest Receivable on Bonds 150,000.00 Other Trade receivable - unassigned 750,000.00 Subscription receivable due in 30 days 825,000.00 Trade Account Receivable assigned (BC Company's equity in assigned accounts is P150,000) 375,000.00 Trade Installment Receivable due 1-18 months,…
The Miller Company earned $190,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $136,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account. What is the amount of uncollectible accounts expense that will be recognized on the Year 1 income statement? Multiple Choice О $5,700 $1,320 О $4,080
Pichai Party Supplies reported an allowance for doubtful accounts of $24,000 at the beginning of the fiscal year and $32,000 at the end of the fiscal year. During the year, the company recognized bad debt expense of $30,000. What amount did the company record as accounts receivables write-offs during the year? $30,000. $22,000. None of the answers are correct. $32,000. $24,000.
Hh
On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for expected credit losses. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: a. The company made a credit sale of $300,000. b. The company collected accounts receivable for 350,000. c. The company wrote off the uncollectible accounts for $12,000. d. The company collected the receivable of $4,000 that had been written off previously. Required Note: Show calculation: (1) Prepare journal entries to record the above four transactions. (2) Assume that 2% of the company’s accounts receivable cannot be collected, prepare the adjusting journal entry at the end of 20X2.
At the end of the first year of operations, mayberry advertising had accounts receivable of $21100. Management of the company estimates that 8% of the accounts will not be collected What adjutment would mayberry advertising record to established allowance for uncollectible accounts Do the journal entry worksheet
Kindly help me solve no. 4 and 5 with clear solution please. Thank you so much
:Company provided the following information related to its accounts receivable. Last year 12/31 Estimated that P7,000 of accounts receivable would become uncollectible. Current year 1/05 Wrote-off the P 5,000 balance owed by J Company and the 2,000 balance owed by F Company. 3/18 Reinstate the account of J Company that had been written off since they signify and confirmed the payment. 3/21 Receipt of payment in full. Required: Journalize the transactions
In the first year of operations, Ralph's Repair Service recognized $482,000 of service revenue earned on account. The ending accounts receivable balance was $88,900. Ralph estimates that 2% of sales on account will not be collected. During the year, Ralph wrote off a $200 receivable that was determined to be uncollectible. Assume there were no other transactions affecting accounts receivable. Required: a. What amount of cash was collected in Year 1? b. What amount of uncollectible accounts expense was recognized In Year 1? c. What will be Ralph's net realizable value of receivables on the December 31, Year 1 balance sheet? a. Cash collected b. Uncollectible accounts expense c. Net realizable value of receivables
The December 31, 20X7 statement of financial position of Howson Limited showed Trade Accounts Receivable of $450, 000 and a credit balance in Allowance for Doubtful Accounts of $ 45,000. During 20X8, the following transactions occurred: service revenue billed on account, $1,500,000; collections from customers, $1,300,000; accounts written off $37,000; previously written off accounts of $4,000 were collected. Required: (a) Record the 20X8 transactions. (b) If the company uses the percentage of receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 5% of trade accounts receivable, what is the adjusting entry at December 31, 20X8?