At the beginning of current year, Nostalgia Company reported the following information: Accounts receivable Allowance for doubtful accounts 1,500,000 60,000 The following summary transactions affecting accounts receivable occurred during the current year: Sales - all on account 2/10, 1/15, n /60 7,935,000 Cash received from customers 8,000,000 The cash received from customers included the following. Customers paying within the 10-day discount period 4,410,000 Customers paying within the 15-day discount period 2,475,000 Recovery of accounts written off 15,000 Customers paying beyond the discount period Accounts receivable written off as worthless 55,000 Credit memoranda for sales return 30,000 Required: a. Prepare journal entries to record the transactions. b. Prepare the adjustment for doubtful accounts if the entity follows the percentage of accounts receivable consistently. c. Determine the net realizable value of accounts receivable at year-end?

At the beginning of current year, Nostalgia Company reported the following information: Accounts receivable Allowance for doubtful accounts 1,500,000 60,000 The following summary transactions affecting accounts receivable occurred during the current year: Sales - all on account 2/10, 1/15, n /60 7,935,000 Cash received from customers 8,000,000 The cash received from customers included the following. Customers paying within the 10-day discount period 4,410,000 Customers paying within the 15-day discount period 2,475,000 Recovery of accounts written off 15,000 Customers paying beyond the discount period Accounts receivable written off as worthless 55,000 Credit memoranda for sales return 30,000 Required: a. Prepare journal entries to record the transactions. b. Prepare the adjustment for doubtful accounts if the entity follows the percentage of accounts receivable consistently. c. Determine the net realizable value of accounts receivable at year-end?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000 Allowance for doubtful accounts, 1/1/22 28,600 Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000 Cash received from customers during the year 2,400,000 Accounts written off during the year 17,600 Cash refunds given to cash customers for sales returns and allowances 15,000 Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000 Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and…
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Van Company provided the following data for the current year in relation to accounts receivable: Debits January 1 balance after deducting credit balance P30,000 Charge sales Charge for goods out on consignment Shareholders' subscriptions 530,000 5,250,000 50,000 1,000,000 10,000 25,000 Accounts written off but recovered Cash paid to customer for January 1 credit balance Goods shipped to cover January 1 credit balance Deposits on long-term contract Claim against common carrier Advances to supplier 5,000 500,000 400,000 300,000 Credits Collections from customers, including over payment of P50,000 Writeoff 5,200,000 35,000 25,000 15,000 50,000 Merchandise returns Allowances to customers for shipping damages Collection on carrier claim Collection on subscription What total amount of trade and other receivables should be reported under current 200,000 assets?
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Star Company provided the following transactions affecting accountsreceivable during the year ended December 31, 2014:Sales (cash and credit) 5,900,000Cash received from credit customers, all of whomtook advantage of the discount feature of theentity’s credit terms 4/10, n/30 3,024,000Cash received from cash customers 2,100,000Accounts receivable written off as worthless 50,000Credit memorandum issued to credit customersfor sales returns and allowances 250,000Cash refunds given to cash customers for salesreturns and allowances 20,000Recoveries on accounts receivable written off asuncollectible in prior periods (not included incash amount stated above) 80,000The following balances were taken from January 1, 2014 statement of financial position:Accounts receivable 950,000Allowance for doubtful accounts 100,000The entity provided for uncollectible accounts losses by crediting allowance for doubtful accountsin the amount of P 70,000 for the current year.23. What is the balance of accounts…