For Nos. 20-21 Nabangsit Corporation reported the followlng recelvables on December 31, 2018: Accounts recelvable, net of P520,000 allowance for doubtful accounts Interest receivable P3,840,000 190,000 4,000,000 Notes receivable Additional Information: The notes recelvable comprised of the following: P3,000,000 note dated March 31, 2018, with principal and 8% interest payable on March 31, 2019. P1,000,000 note dated October 31, 2018, with principal and interest payable on October 31, 2019. During 2019, sales revenue totaled P21,200,000, cash collected from customers amounted to P19,800,000, and P410,000 in accounts recelvable were written off. All sales are made on credit basis. Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 20. What amount should be reported as interest income for 2019? P240,000 d. P110,000 P80,000 P60,000 a. C. b. 21. What amount should be reported as doubtful accounts expense for 2019? P425,000 d. P535,000 a. P410,000 C. b. P110,000 22. The following information is available for AVS-CVN Company: Credit sales during 2019 Accounts receivable deemed worthless and written off during 2019 Allowance for doubtful accounts at December 31, 2018 P 8,000,000 180,000 160,000 As a result of a review and aging of acco Pagerece vabe ingeary doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for the vear ended December 31, 2019? muar 2020,+owever, it has been determined that an allowance for
For Nos. 20-21 Nabangsit Corporation reported the followlng recelvables on December 31, 2018: Accounts recelvable, net of P520,000 allowance for doubtful accounts Interest receivable P3,840,000 190,000 4,000,000 Notes receivable Additional Information: The notes recelvable comprised of the following: P3,000,000 note dated March 31, 2018, with principal and 8% interest payable on March 31, 2019. P1,000,000 note dated October 31, 2018, with principal and interest payable on October 31, 2019. During 2019, sales revenue totaled P21,200,000, cash collected from customers amounted to P19,800,000, and P410,000 in accounts recelvable were written off. All sales are made on credit basis. Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 20. What amount should be reported as interest income for 2019? P240,000 d. P110,000 P80,000 P60,000 a. C. b. 21. What amount should be reported as doubtful accounts expense for 2019? P425,000 d. P535,000 a. P410,000 C. b. P110,000 22. The following information is available for AVS-CVN Company: Credit sales during 2019 Accounts receivable deemed worthless and written off during 2019 Allowance for doubtful accounts at December 31, 2018 P 8,000,000 180,000 160,000 As a result of a review and aging of acco Pagerece vabe ingeary doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for the vear ended December 31, 2019? muar 2020,+owever, it has been determined that an allowance for
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:termediate Accounting 1.docx
Open with Google Docs
For Nos. 20-21
Nabangst Corporation reported the following recelvables on December 31, 2018:
Accounts recelvable, net of P520,000 allowance for doubtful accounts
Interest receivable
P3,840,000
190,000
4,000,000
Notes receivable
Additional Information:
The notes recelvable comprised of the following:
P3,000,000 note dated March 31, 2018, with principal and 8% interest payable on March 31, 2019.
P1,000,000 note dated October 31, 2018, with principal and interest payable on October 31, 2019.
During 2019, sales revenue totaled P21,200,000, cash collected from customers amounted to P19,800,000, and P410,000 in accounts
receivable were written off. All sales are made on credit basis.
Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end
accounts receivable.
20. What amount should be reported as interest income for 2019?
P240,000
d. P110,000
a.
P80,000
C.
b.
P60,000
21. What amount should be reported as doubtful accounts expense for 2019?
P410,000
b. P110,000
P425,000
d. P535,000
a.
C.
The following information is available for AVS-CVN Company:
Credit sales during 2019
Accounts receivable deemed worthless and written off during 2019
Allowance for doubtful accounts at December 31, 2018
22.
P 8,000,000
180,000
160,000
As a result of a review and aging of accopagerecevab/e ingeary nuar G2020--owever, it has been determined that an allowance for
doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for the
vear ended December 31, 20197
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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