ABC Company showed the following balances on December 31, 2021:Accounts receivableP4,000,000Allowance for doubtful accounts- credit120,000The following transactions transpired for ABC Company during the year 2021:o On May 1, received a P600,000, six-month, 12% interest bearing note from CD, a customer, in settlement of an account.o On June 30, factored P800,000 of its accounts receivable to a finance company. The finance company charged a factoringfee of 5% of the accounts factored and withheld 20% of the amount factored.On August 1, ABC Company discounted the CD note at the bank at 15%.On November 1, CD defaulted on the P600,000 note. ABC Company paid the bank the total amount due plus a P24,000protest fee and other bank charges.On December 31, ABC Company assigned P1,200,000 of its accounts receivable to a bank under non-notification basis. Thebank advanced 80% less service fee of 5% of the accounts assigned. ABC Company signed a promissory note for the loan.On December 31, ABC collected from CD in full including interest on total amount due at 12% since default date.o On December 31, it is estimated that 8% of the outstanding accounts receivable may prove uncollectible.Based on the foregoing information, answer the following: (Note: Use at least 4 decimal places, if needed.)1. How much was received on June 30 factoring?2. How much was received on August 1 discounting?3. How much was paid on November 1 default on the P600,000 note?4. How much was received on December 31 assignment of accounts receivable?5. How much was received on December 31 collection of the account on CD?6. How much is the net realizable of the accounts receivable of ABC Company on December 31, 2021?

"Since you have asked multiple question we will solve the first three sub part question for you. If…

Answered: On December 31, it is estimated that 8%…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The ADA has the below table regarding its account receivable: Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050 Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100 Account receivable $14,100 c. Bad debt expense $14,100 Allowance for doubtful accounts $14,100 d. Account receivable $7,100 Bad debt expense $7,100
A $14,400, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is the one listed below. Select the correct answer. a-debit Notes Receivable, $14,544; credit Accounts Receivable, $14,544 b-debit Cash, $14,544; credit Notes Receivable, $14,544 c-debit Accounts Receivable, $14,544; credit Notes Receivable, $14,400; Credit Interest Revenue, $144 d-debit Notes Receivable, $14,544; credit Accounts Receivable, $14,400; Credit Interest Receivable, $144
Injae Trading Company prepared an aging of its accounts receivable on December 31, 2020 and determined that the net realizable value of the Accounts Receivable was P2,500,000. Additional data is available as follows: Allowance for bad debts, January 1 P 280,000 • Accounts written off as uncollectible 230,000 • Accounts receivable, December 31 2,700,000 • Uncollectible accounts recovery 50,000 For the year ended December 31, 2017, what was the bad debts expense? A. P 230,000 B. P200,000 C. P150,000 D. P100,000
H5.
Trout Lumber Yard has a current accounts receivable balance of $440,516. Credit sales for the year just ended were $6,354,830. a. What is the receivables turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the days’ sales in receivables? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How long did it take on average for credit customers to pay off their accounts during the past year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. (Round dollars to the nearest cent.) Monthly Annual Finance Purchases Payments and New Previous Periodic Percentage Rate (APR) Charge (in $) and Cash Balance Balance Rate Advances Credits (in $) (as a %) $1,027.61 % 1% $322.20 $400.00
jaydip
At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net expected realizable value of the accounts receivable? $25,000 O $450,000 O $455,000 $425,000
The company estimates future uncollectible accounts. The company determines $16,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
Accounts Receivable on 31 December and one year prior to it were P312,400 and P428,400 respectively. P954,840 was received from customers during the year, after writing off P62,480 and increasing the Provision for doubtful debts by P14,840. The amount of sales amounted to P901,320 P1,133,320 P916,160
Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. PreviousBalance AnnualPercentageRate (APR) MonthlyPeriodicRate(as a %) FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $45.00 12% % $ $176.20 $55.00 $

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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

SEE MORE TEXTBOOKS