Prepare the adjusting entries for the following independent cases on December 31, 2021, unless the transaction provides another year-end. Miguel Catering Services is entitled to a 15% commission which is always received on the 5th day following the month of sale, based on its monthly sale of the products of Gourmet Corporation. Sales of Pollux of Gourmet's products for the last two months of 2021 are as follows: November, ₱375,000; December, ₱420,000. Texas Printing Shop bought a printing machine on March 31, 2021 for ₱180,000. On September 1, 2021, the firm bought additional two printing machines at ₱150,000 each. It is the policy of the firm to depreciate its fixed assets at an annual depreciation rate of 20% with salvage value of 10% of original cost. West Virginia Urban Cable estimates loss on accounts at 10% of Accounts Receivable. As of December 31, 2021, its total accounts receivable amounts to ₱320,000 and the balance of the allowance for doubtful accounts amounts to ₱25,000 before adjustment. Missouri General Services has ₱85,000 outstanding customer accounts and allowance for doubtful accounts of ₱4,250 on January 1, 2021. During the year, the firm rendered ₱567,800 worth of services, 25% of which is on cash basis. It also collected ₱324,550 during the year. The company estimates loss on accounts at 5% of year-end accounts receivable balance.

Intermediate Accounting: Reporting And Analysis

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ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

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Prepare the adjusting entries for the following independent cases on December 31, 2021, unless the transaction provides another year-end.

Miguel Catering Services is entitled to a 15% commission which is always received on the 5^th day following the month of sale, based on its monthly sale of the products of Gourmet Corporation. Sales of Pollux of Gourmet's products for the last two months of 2021 are as follows: November, ₱375,000; December, ₱420,000.
Texas Printing Shop bought a printing machine on March 31, 2021 for ₱180,000. On September 1, 2021, the firm bought additional two printing machines at ₱150,000 each. It is the policy of the firm to depreciate its fixed assets at an annual depreciation rate of 20% with salvage value of 10% of original cost.
West Virginia Urban Cable estimates loss on accounts at 10% of Accounts Receivable. As of December 31, 2021, its total accounts receivable amounts to ₱320,000 and the balance of the allowance for doubtful accounts amounts to ₱25,000 before adjustment.
Missouri General Services has ₱85,000 outstanding customer accounts and allowance for doubtful accounts of ₱4,250 on January 1, 2021. During the year, the firm rendered ₱567,800 worth of services, 25% of which is on cash basis. It also collected ₱324,550 during the year. The company estimates loss on accounts at 5% of year-end accounts receivable balance.

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