MD Company started business at the beginning of current year. The entity established an allowance for doubtful accounts estimated at 5% credit sales. During the year, the entity wrote off Php20,000 of uncollectible accounts. Merchandise purchased amounted to Php18,000,000 and ending merchandise inventory was Php3,000,000. Goods were sold at 20% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to Php12,000,000. What is the net realizable value of accounts receivable at year-end

MD Company started business at the beginning of current year. The entity established an allowance for doubtful accounts estimated at 5% credit sales. During the year, the entity wrote off Php20,000 of uncollectible accounts. Merchandise purchased amounted to Php18,000,000 and ending merchandise inventory was Php3,000,000. Goods were sold at 20% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to Php12,000,000. What is the net realizable value of accounts receivable at year-end

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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MD Company started business at the beginning of current year. The entity established an allowance for doubtful accounts estimated at 5% credit sales. During the year, the entity wrote off Php20,000 of uncollectible accounts. Merchandise purchased amounted to Php18,000,000 and ending merchandise inventory was Php3,000,000. Goods were sold at 20% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to Php12,000,000. What is the net realizable value of accounts receivable at year-end?
MD Company started business at the beginning of current year. The entity established an allowance for doubtful accounts estimated at 5% credit sales. During the year, the entity wrote off Php20,000 of uncollectible accounts. Merchandise purchased amounted to Php18,000,000 and ending merchandise inventory was Php3,000,000. Goods were sold at 20% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to Php12,000,000. What is the net realizable value of accounts receivable at year-end? Your answer
Germany Company started business at the beginning of current year. The entity established an allowance for doubtful accounts estimated at 5% credit sales.During the year, the entity wrote off Php50,000 of uncollectible accounts.Merchandise purchased amounted to Php9,000,000 and ending merchandise inventory was Php1,500,000. Goods were sold at 40% above cost.The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to Php6,000,000.What amount should be reported as sales on account?What is the net realizable value of accounts receivable at year-end?
CPA Co. started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off P50,000 of uncollectible accounts. Further analysis showed that merchandise purchased amounted to P9,000,000 and ending merchandise inventory was P1,500,000. Goods were sold at 40% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to P6,000,000. What is the net realizable value of accounts receivable at year-end?
Germo Company started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off P50,000 of uncollectible accounts. Further analysis showed that the merchandise purchased amounted to P9,000,000 and ending merchandise inventory was P1,500,000. Goods were sold at 40% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to P6,000,000. What is the amount of sales on account?
Germo Company started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off P50,000 of uncollectible accounts. Further analysis showed that the merchandise purchased amounted to P9,000,000 and ending merchandise inventory was P1,500,000. Goods were sold at 40% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to P6,000,000. What is the net realizable value of accounts receivable at year-end?
BC Corp. reported a P500,000 account receivable balance at the beginning of the calendar year. For the year, it reported net credit sales of P4,000,000 and collections from customers of P4,050,000. An analysis of the sales showed that a sale amounting to P40,000 was shipped to the buyer on Dec. 31 under FOB destination term while a sale amounting to P50,000 was shipped to the buyer on Jan. 1 under FOB shipping point term. Included in the collections was an over-payment by a customer in the amount of P13,000. Not included in the initial sales and collections amounts are the following:(A) Sales made to officers made under customary terms, P200,000 of which were collected – P700,000 and(B) Claims against common carrier – P 200,000. How much should ABC report as accounts receivables as of Dec. 31?
Cortez Corporation uses the percentage of sales method to estimate its uncollectible accounts. Cortez has an ending balance of accounts receivable of $10,000. The allowance for doubtful accounts showed a balance of $1,000 in the beginning of the period. During the year, a total of $300 in accounts was written off as uncollectible. The company made credit sales of $100,000 in the current period. It estimates that 5% of sales will prove to be uncollectible. What is the ending balance of allowance for doubtful accounts of the company for the current period? Please don't provide answer in image format thank you
During the current year, Khan’s Camera Shop had sales revenue of $220,000, of which $100,800 was on credit. At the start of the current year, Accounts Receivable showed a $22,400 debit balance and the Allowance for Doubtful Accounts showed a $1,210 credit balance. Collections of accounts receivable during the current year amounted to $84,000. The Company uses the percentage of receivables method to account for its estimated uncollectible accounts. Data during the current year follow: a. On December 31, an Accounts Receivable from a deadbeat customer (Melania Trump, Wedding Photographer) of $2,800 from a prior year was determined to be uncollectible; therefore it was written off immediately as a bad debt. b. On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated uncollectible accounts on 3 percent of the end balance of accounts receivable. What is the Company’s bad debt expense for the year?
During the current year, Watanabe’s Camera Shop had sales revenue of $210,000, of which $86,400 was on credit. At the start of the current year, Accounts Receivable showed a $19,200 debit balance and the Allowance for Doubtful Accounts showed a $440 credit balance. Collections of accounts receivable during the current year amounted to $72,000. The Company uses the percentage of receivables method to account for its estimated uncollectible accounts. Data during the current year follow: a. On December 31, an Accounts Receivable from a deadbeat customer (Melania Trump, Wedding Photographer) of $3,400 from a prior year was determined to be uncollectible; therefore it was written off immediately as a bad debt. b. On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated uncollectible accounts on 2 percent of the end balance of accounts receivable. What is the Company’s bad debt expense for the year?
Delta Company sold goods to wholesalers on terms 2/15, net 30. The entity had no cash sales but 50% of the customers took advantage of the discount. The entity used the gross method of recording sales and accounts receivable. An analysis of the trade accounts receivables at year-end revealed the following: Collectible Age 0-15 days 16-30 days 31-60 days Over 60 days Amount 2,000,000 1,400,000 400,000 200,000 4,000,000 100% 95% 90% 50% What amount should be reported as allowance for sales discount at year-end?
A company had a beginning Accounts Receivable balance of $939,400 and a credit balance of $1,200 in the Allowance for Doubtful Accounts. During the month, total sales of $5,275,000 were made. Of the total sales, $4,150,000 were credit sales while the remaining amount was cash sales. The company collected $3,825,000 from customers for amounts owed. It estimates that 0.5% of credit sales are uncollectible. Prepare the adjusting entry at the end of the month. Account Names DR CR Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. Blank 9. Fill in the blank, read surrounding text. Blank 10. Fill in the blank, read…