Presented below are unaudited balances of selected accounts of Angelica Company as of December 31, 2021 Unadjusted balances, December 31, 2021 Selected accounts Debit Credit Cash 500.000 Accounts receivable 1,300,000 Allowance for bad debts 8,000 Net sales 6.750.000 Additional information are as follows: • Goods amounting to P50,000 were invoiced for the accounts of Mang Kanour Store & Company recorded on January 2, 2022 with terms of net, 60 days, FOB shipping point. The goods were shipped to Mang Kanour on December 30, • The bank returned on December 29, 2021, a customer's check for P15,000 marked "No Sufficient Funds", but no entry was • Angelica estimates that allowance for uncollectible accounts should be one and one-half percent on the accounts receivable balance as of year-end. No uncollectible accounts expense has yet been provided for Questions: Based on the above and the result of your audit, answer the following: 1. What is the adjusted balance of Accounts Receivable on December 31, 2021? 1,265,000 1,350,000 1,335,000 1,315,000 2. what is rhe adjusted balance of allowance for uncollectible accounts on december 31, 2021? 20,475 20,250 20,025 19,725 3. what is the adjusted amount of 2021 uncolletible accountts expense? 12,475 28,025 28,250 28,475 4. what is the carrying amount of the accounts receivable to be presented in the statement of financial position as of december 31, 2021? 1,344,525 1,344,525 1,365,000 1,329,750 5. the adjusting journal entry for the check marked "no sufficient fund" involves a. debit to cash in bank 15,000 b. debiit to accounts receivable 15,000 c. debit to sales 15,000 d. debiit to bad debt expense 15,000
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.
Presented below are unaudited balances of selected accounts of Angelica Company as of December 31, 2021 Unadjusted balances, December 31, 2021
Selected accounts Debit Credit
Cash 500.000
Allowance for
Net sales 6.750.000
Additional information are as follows:
• Goods amounting to P50,000 were invoiced for the accounts of Mang Kanour Store & Company recorded on January 2, 2022 with terms of net, 60 days, FOB shipping point. The goods were shipped to Mang Kanour on December 30,
• The bank returned on December 29, 2021, a customer's check for P15,000 marked "No Sufficient Funds", but no entry was
• Angelica estimates that allowance for uncollectible accounts should be one and one-half percent on the accounts receivable balance as of year-end. No uncollectible accounts expense has yet been provided for
Questions: Based on the above and the result of your audit, answer the following:
1. What is the adjusted balance of Accounts Receivable on December 31, 2021?
1,265,000
1,350,000
1,335,000
1,315,000
2. what is rhe adjusted balance of allowance for uncollectible accounts on december 31, 2021?
20,475
20,250
20,025
19,725
3. what is the adjusted amount of 2021 uncolletible accountts expense?
12,475
28,025
28,250
28,475
4. what is the carrying amount of the accounts receivable to be presented in the
1,344,525
1,344,525
1,365,000
1,329,750
5. the
a. debit to cash in bank 15,000
b. debiit to accounts receivable 15,000
c. debit to sales 15,000
d. debiit to bad debt expense 15,000
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
