Items 19 to 20 are based on the following information: You have been assigned to audit the financial statements of BJ Electronics. BJ Electronics is a distributor of a variety of electronic appliances and parts. The company uses the calendar year for reporting purposes. Information regarding balances of BJ's Accounts Receivable and the related Allowance for Doubtful Accounts as of December 31, 2005 and the related audit findings is given below. The schedule of accounts receivable furnished you by the accountant reflects some errors. The total figure in the schedule does not tally with the balance per general ledger of P9,190,000. Based on your review of sales invoices, purchase orders and other related documents, you noted the following information: 1. Sales on account of various electronics totaling P364,800 were returned by the customer on December 28, 2005, but no entry was made in the books. The goods were included in the year- end physical count. 2. Based on the findings per confirmation reply from a customer, he indicated that he has already paid his account of P239,800 in October 2005. Your verification disclosed that said collection was credited to net sales account. 3. Collection of P129,500 on November 5, 2005 from Diana Corporation was credited to the account DNA Corporation. The allowance for doubtful accounts is set at 5%of the outstanding accounts receivable at the end of the period. As of December 31, 2005, the allowance for Doubtful Accounts has a balance of P324,000 before adjustment. 19. What is the adjusted balance of Accounts Receivable as of December 31, 2005? a. P8,585,400 b. P9,190,000 c. P8,825,200 d. P8,950,200 Page 25 of 48 20. What is the adjusted balance of Allowance for Doubtful Accounts as of December 31, 2005? c. P105,270 а. Р324,000 b. Р429,270 d. P753,270
Items 19 to 20 are based on the following information: You have been assigned to audit the financial statements of BJ Electronics. BJ Electronics is a distributor of a variety of electronic appliances and parts. The company uses the calendar year for reporting purposes. Information regarding balances of BJ's Accounts Receivable and the related Allowance for Doubtful Accounts as of December 31, 2005 and the related audit findings is given below. The schedule of accounts receivable furnished you by the accountant reflects some errors. The total figure in the schedule does not tally with the balance per general ledger of P9,190,000. Based on your review of sales invoices, purchase orders and other related documents, you noted the following information: 1. Sales on account of various electronics totaling P364,800 were returned by the customer on December 28, 2005, but no entry was made in the books. The goods were included in the year- end physical count. 2. Based on the findings per confirmation reply from a customer, he indicated that he has already paid his account of P239,800 in October 2005. Your verification disclosed that said collection was credited to net sales account. 3. Collection of P129,500 on November 5, 2005 from Diana Corporation was credited to the account DNA Corporation. The allowance for doubtful accounts is set at 5%of the outstanding accounts receivable at the end of the period. As of December 31, 2005, the allowance for Doubtful Accounts has a balance of P324,000 before adjustment. 19. What is the adjusted balance of Accounts Receivable as of December 31, 2005? a. P8,585,400 b. P9,190,000 c. P8,825,200 d. P8,950,200 Page 25 of 48 20. What is the adjusted balance of Allowance for Doubtful Accounts as of December 31, 2005? c. P105,270 а. Р324,000 b. Р429,270 d. P753,270
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer no.19-20 correctly and provide computation. Thank you;)
Transcribed Image Text:Items 19 to 20 are based on the following information:
You have been assigned to audit the financial statements of BJ Electronics. BJ Electronics is a distributor
of a variety of electronic appliances and parts. The company uses the calendar year for reporting
purposes. Information regarding balances of BJ's Accounts Receivable and the related Allowance for
Doubtful Accounts as of December 31, 2005 and the related audit findings is given below.
The schedule of accounts receivable furnished you by the accountant reflects some errors. The total
figure in the schedule does not tally with the balance per general ledger of P9,190,000. Based on your
review of sales invoices, purchase orders and other related documents, you noted the following
information:
1. Sales on account of various electronics totaling P364,800 were returned by the customer on
December 28, 2005, but no entry was made in the books. The goods were included in the year-
end physical count.
2. Based on the findings per confirmation reply from a customer, he indicated that he has already
paid his account of P239,800 in October 2005. Your verification disclosed that said collection
was credited to net sales account.
3. Collection of P129,500 on November 5, 2005 from Diana Corporation was credited to the
account DNA Corporation.
The allowance for doubtful accounts is set at 5%of the outstanding accounts receivable at the end of
the period. As of December 31, 2005, the allowance for Doubtful Accounts has a balance of
P324,000 before adjustment.
19. What is the adjusted balance of Accounts Receivable as of December 31, 2005?
a. P8,585,400
b. Р9,190,000
c. P8,825,200 d. P8,950,200
Page 25 of 48
20. What is the adjusted balance of Allowance for Doubtful Accounts as of December 31, 2005?
а. Р324,000
b. P429,270
C.
P105,270
d. P753,270
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 3 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