Copy_of_Chapter_3_Rec.. Before any adjustments were made, the balance of the allowance for doubtful accounts was P175,000. Coachella determines the balance of the allowance for doubtful accounts at the average percentage of the losses for the last five years. The entity writes off receivables if they are determined to be totally worthless. 1. Compute for the adjusted balance of Coachella's allowance for doubtful accounts on December 31, 2020. 2. Compute for the doubtful accounts expense that Coachella should recognize in 2020. 3. Determine the net realizable value of Coachella's accounts receivable on December 31, 2020. 20 Mash Exercise 3 – 3 The adjusted trial balance of Thomas Company as of December 31, 2019 shows the following: Debit Credit Accounts Receivable P 1,000,000 Allowance for Doubtful Accounts P 40,000 Additional information: a. Cash sales of the company represent 10% of gross sales. Total sales amounted to P12,000,000. b. Ninety percent of the credit sales customers did not take advantage of the 2/10, n/30 terms. Total face value of accounts receivable collected during the year was P8,360,000. c. Sales returns in 2020 amounted to P400,000. All returns were from charge sales. d. During 2020, accounts totaling P40,000 were written off as uncollectible; bad debt recoveries during the year amounted to P3,000. e. The allowance for doubtful accounts is measured as follows: Percentage of ending balance Percent uncollectible 60 2 20 20 12 40 60 3 90 Based on the information given, answer the following: 1. Accounts Receivable balance as of December 31, 2020 2. Allowance for Doubtful Accounts, December 31, 2020 3. Net realizable value, December 31, 2020 4. Doubtful Accounts Expense for 2020.
Copy_of_Chapter_3_Rec.. Before any adjustments were made, the balance of the allowance for doubtful accounts was P175,000. Coachella determines the balance of the allowance for doubtful accounts at the average percentage of the losses for the last five years. The entity writes off receivables if they are determined to be totally worthless. 1. Compute for the adjusted balance of Coachella's allowance for doubtful accounts on December 31, 2020. 2. Compute for the doubtful accounts expense that Coachella should recognize in 2020. 3. Determine the net realizable value of Coachella's accounts receivable on December 31, 2020. 20 Mash Exercise 3 – 3 The adjusted trial balance of Thomas Company as of December 31, 2019 shows the following: Debit Credit Accounts Receivable P 1,000,000 Allowance for Doubtful Accounts P 40,000 Additional information: a. Cash sales of the company represent 10% of gross sales. Total sales amounted to P12,000,000. b. Ninety percent of the credit sales customers did not take advantage of the 2/10, n/30 terms. Total face value of accounts receivable collected during the year was P8,360,000. c. Sales returns in 2020 amounted to P400,000. All returns were from charge sales. d. During 2020, accounts totaling P40,000 were written off as uncollectible; bad debt recoveries during the year amounted to P3,000. e. The allowance for doubtful accounts is measured as follows: Percentage of ending balance Percent uncollectible 60 2 20 20 12 40 60 3 90 Based on the information given, answer the following: 1. Accounts Receivable balance as of December 31, 2020 2. Allowance for Doubtful Accounts, December 31, 2020 3. Net realizable value, December 31, 2020 4. Doubtful Accounts Expense for 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Cost-Volume-Profit Analysis
Cost Volume Profit (CVP) analysis is a cost accounting method that analyses the effect of fluctuating cost and volume on the operating profit. Also known as break-even analysis, CVP determines the break-even point for varying volumes of sales and cost structures. This information helps the managers make economic decisions on a short-term basis. CVP analysis is based on many assumptions. Sales price, variable costs, and fixed costs per unit are assumed to be constant. The analysis also assumes that all units produced are sold and costs get impacted due to changes in activities. All costs incurred by the company like administrative, manufacturing, and selling costs are identified as either fixed or variable.
Marginal Costing
Marginal cost is defined as the change in the total cost which takes place when one additional unit of a product is manufactured. The marginal cost is influenced only by the variations which generally occur in the variable costs because the fixed costs remain the same irrespective of the output produced. The concept of marginal cost is used for product pricing when the customers want the lowest possible price for a certain number of orders. There is no accounting entry for marginal cost and it is only used by the management for taking effective decisions.
Question
Here is the questions?
Transcribed Image Text:N
B 75%
2:30 pm
Copy_of_Chapter_3_Rec..
Before any adjustments were made, the balance of the allowance for doubtful accounts
was P175,000. Coachella determines the balance of the allowance for doubtful accounts at the
average percentage of the losses for the last five years. The entity writes off receivables if they
are determined to be totally worthless.
1. Compute for the adjusted balance of Coachella's allowance for doubtful accounts on
December 31, 2020.
2. Compute for the doubtful accounts expense that Coachella should recognize in 2020.
3. Determine the net realizable value of Coachella's accounts receivable on December 31,
2020.
20
Merry
GCash
Exercise 3 – 3
The adjusted trial balance of Thomas Company as of December 31, 2019 shows the
following:
Debit
Credit
Accounts Receivable
P 1,000,000
Allowance for Doubtful Accounts
P 40,000
Additional information:
a. Cash sales of the company represent 10% of gross sales. Total sales amounted to
P12,000,000.
b. Ninety percent of the credit sales customers did not take advantage of the 2/10, n/30 terms.
Total face value of accounts receivable collected during the year was P8,360,000.
c. Sales returns in 2020 amounted to P400,000. All returns were from charge sales.
d. During 2020, accounts totaling P40,000 were written off as uncollectible; bad debt recoveries
during the year amounted to P3,000.
e. The allowance for doubtful accounts is measured as follows:
Percentage of ending balance
Percent uncollectible
60
2
20
20
12
40
5
60
3
90
Based on the information given, answer the following:
1. Accounts Receivable balance as of December 31, 2020
2. Allowance for Doubtful Accounts, December 31, 2020
3. Net realizable value, December 31, 2020
4. Doubtful Accounts Expense for 2020.
Exercise 3 – 4
On January 1, 2020, James Co. received a 10%, five year note from a customer. Interest
is paid every December 31. The note has a face value of P12,000,000. The effective rate on th
date of the receipt of the note was 12%
1. Determine the initial amount of the note.
2. Prepare an amortization table to show the balance of the note at the end of each reporting
period from 2020 to 2024.
2010
A.A.A
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education