Exercise 2-7The accounts receivable control account for the OCEAN COMPANY shows adebit balance of P1,238,000%; the allowance for doubtful accounts shows a credit balanceof P76,000. Subsidiary ledger details reveal the following:1. Trade accounts receivable, pledged (notes payable to MBTCis P160,000)P210,0002. Subscription receivable for common stock (due in 15 months)120,0003. Interest receivable on bonds37,5004. Installment receivable due in 1-16 months (including unearnedfinance charges of P5,000)5. Trade receivables from officers due currently75,0007,0006. Customers' accounts reporting credit balances from sales returns7. Advance payment to creditors on purchase orders8. Advance payment to creditors on order for machinery9. Customers accounts with credit balances arising from advance2,50060,000450,00015,000payments10. Accounts known to be worthless7,00011. Trade accounts on which postdated checks are held (no entrieswere made on the receipt of the checks)12. Advances to affiliated companies to be liquidated in cash13. Other trade accounts receivable, not pledged9,000130,000150,000REQUIRED:1. Compute for the following as of Dec. 31, 2019:a. Trade receivables, current assets (after deducting the related allowance)b. Trade receivables, other assetsC. Non-trade receivables, current assetsd. Non-trade receivables, other assetse. Other accounts, specify

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Answered: d. Trade receivables, current assets…

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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Numbers 2-3 Janine Company factored P5,000,000 of accounts receivable. Control was surrendered by the entity. The finance company assessed a fee of 2% and retains a holdback equal to 10% of the accounts receivable. In addition, the finance company charged 12% interest computed on a weighted average time to maturity of the accounts receivable for 30 days? 2. What is the amount initially received from the factoring of accounts receivable? a. 4,250,000 b. 4,200,000 c. 4,700,685 d. 4,200,685 3. What total amount should be recognized as loss on factoring? a. 299,315 b. 799,315 C. 250,000 d. 0
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PROBLEM 1 Aljon Company reported the following as of December 31, 2021: Accounts receivables P100,000 Notes receivables 80,000 Allowance for doubtful accounts Installment receivables (normally receivable within 1 to 3 years) Customer's credit balances 27,000 150,000 20,000 Supplier's debit balances Advances to subsidiaries 10,000 35.000 Advances to suppliers 30.000 Advances to affiliates 40.000 Security deposit 85.000 Subscriptions receivable 22.000 How much is the total trade receivables as of December 31, 2021?
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1. On December 31, 2020, the accounts receivable control account of nana Company had a balance of P8,200,000. An analysis of the accounts receivable account showed the following:Subscription receivable due in 30 days 2,200,000Advance payments to creditors on purchase orders 400,000Advances to affiliated companies 1,000,000Interest receivable on bonds 400,000Trade accounts receivable – unassigned 2,000,000Customers’ accounts reporting credit balances arising from sales returns ( 600,000)Trade accounts receivable – assigned (Finance Company’s equity inassigned accounts is P500,000) 1,500,000Trade installments receivable due 1-18 months, including unearnedfinance charge of P50,000 850,000Trade accounts receivable from officers, due currently 150,000Trade accounts on which post-dated checks are held (no entries were made on receipt of checks) 200,000Accounts known to be worthless 100,000Total 8,200,000The correct balance of trade accounts receivable on December 31, 2020 is_________.
! Required information Exercise 7-7A (Algo) Effect of recognizing uncollectible accounts on the financial statements: Percent of receivables allowance method LO 7-2 [The following information applies to the questions displayed below.] Leach Incorporated experienced the following events for the first two years of its operations: Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $70,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $39,000 cash from accounts receivable. 5. Paid $20,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $2,600. 2. Provided $90,000 of services on account. 3. Provided $30,000 of services and collected cash. 4. Collected $72,000 cash from accounts receivable. 5. Paid $26,000 of salaries…
Problem 6 Tantrum Company provided the following information in relation to accounts receivable at year-end: Days Outstanding % Uncollectible Estimated Amount 1,200,000 0-60 1% 2% 61-120 900,000 Over 120 1,000,000 6% During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the current year?
48. Queen Company began the current year with accounts receivable of P1,000,000 and allowance for doubtful accounts of P80,000. During the current year, the following events occurred: Accounts written off 120,000 500,000 3,000,000 Cash Sale Sales on account Doubtful account expense recognized At the end of the current year, the entity showed a balance in accounts receivable of P1,680,000. 200,000 Under cash basis, what amount should be reported as sales? а. 2,700,000 b. 2,200,000 с. 3,500,000 d. 3,320,000
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Problem 20 On December 31, 2020, the accounts receivable control account of Eddie Company had a balance of PS,200,000. An analysis of the accounts receivable account showed the following: Subscription receivable due in 30 days Advance payments to creditors on purchase orders Advances to affiliated companies Interest receivable on bonds Trade accounts receivable - unassigned Customers' accounts reporting credit balances arising from sales returns Trade accounts receivable - assigned (Finance Company's equity in assigned accounts is P500,000) OMNA Trade installments receivable due 1-18 months, including unearned finance charge of P50,000 Trade accounts receivable from officers, due currently Trade accounts on which post-dated checks are held (no entries were made on receipt of checks) Accounts known to be worthless Total 2,200,000 400,000 1,000,000 400,000 2,000,000 ( 600,000) 1,500,000 850,000 150,000 200,000 100,000 8,200,000 The correct balance of trade accounts receivable on December…
Problem 1On December 31, 2020, the “Receivables” account of MG Company shows a debit balance of P2,000,000. Theallowance for doubtful accounts shows a credit balance of P50,000. The subsidiary ledger shows the followingdetails:Trade accounts receivable P775,000Trade notes receivable 100,000Installment receivable, due 1-2 years 300,000Customer’s account reporting credit balancesarising from sales returns (30,000)Advance payments for purchase of merchandise 150,000Customer’s account reporting credit balancesarising from advance payments (20,000)Advances to subsidiary 400,000Claim from insurance company 15,000Subscription receivable, due in 60 days 300,000Accrued interest receivable 10,000REQUIRED:1. Compound entry to reclassify the receivable account:2. The amount to be presented as “Trade and other receivables” under current assets_____________ Problem 2At the end of the year before making any adjustments, the trial balance of Kate Company include the followingitems among…

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d. Trade receivables, current assets (after deducting the related allowance) b. Trade receivables, other assets C. Non-trade receivables, current assets