● ● PROBLEM 5-11 The following balances have been excerpted from Potassium's Statement of Financial Position for the year 2021: ● Accounts receivable Allowance for bad debts Merchandise inventory Accounts payable Accounts receivable written off Cash received from customers Cash paid to trade creditors Sales discounts Purchase returns Rental receivables Rental payable Cash received from tenants January 1 200,000 20,000 380,000 150,000 70,000 60,000 Dec. 31 300,000 30,000 330,000 100,000 50,000 Additional information: dedused. Collections from customers included customer's deposit of P80,000 of which de P20,000-selling price of goods were already shipped and received by the customer. The shipment of goods was not recorded by the company although the cost of merchandise was properly excluded in the count. chidee Sulis Coth Collections from customers also included P30,000 payment from customer of accounts receivable in which a check dated January 15, 2022 was received. Collections also included recovery of accounts previously written off amounting to P8,000. 1,498,000 1,200,000 20,000 10,000 80,000 35,000 120,000 AIR Included in the payment to trade creditors was a check drawn and recorded by the company to the supplier in December 2021 amounting to P20,000 which was delivered to the payee on January 10, 2022. Also the company did not record payment to supplier amounting to P30,000.
● ● PROBLEM 5-11 The following balances have been excerpted from Potassium's Statement of Financial Position for the year 2021: ● Accounts receivable Allowance for bad debts Merchandise inventory Accounts payable Accounts receivable written off Cash received from customers Cash paid to trade creditors Sales discounts Purchase returns Rental receivables Rental payable Cash received from tenants January 1 200,000 20,000 380,000 150,000 70,000 60,000 Dec. 31 300,000 30,000 330,000 100,000 50,000 Additional information: dedused. Collections from customers included customer's deposit of P80,000 of which de P20,000-selling price of goods were already shipped and received by the customer. The shipment of goods was not recorded by the company although the cost of merchandise was properly excluded in the count. chidee Sulis Coth Collections from customers also included P30,000 payment from customer of accounts receivable in which a check dated January 15, 2022 was received. Collections also included recovery of accounts previously written off amounting to P8,000. 1,498,000 1,200,000 20,000 10,000 80,000 35,000 120,000 AIR Included in the payment to trade creditors was a check drawn and recorded by the company to the supplier in December 2021 amounting to P20,000 which was delivered to the payee on January 10, 2022. Also the company did not record payment to supplier amounting to P30,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
Determine the accrual balance of the following as of December 31, 2021:
1. Net Sales
2. Net Purchases
3. Cost of Sales
4. Rent Income
5.
Transcribed Image Text:●
●
PROBLEM 5-11
The following balances have been excerpted from Potassium's Statement of
Financial Position for the year 2021:
cride
Sulis
●
Accounts receivable
Allowance for bad debts
Merchandise inventory
Accounts payable
Accounts receivable written off
Cash received from customers
Cash paid to trade creditors
Sales discounts
Purchase returns
Rental receivables
Rental payable
Cash received from tenants
January 1
200,000
20,000
380,000
150,000
70,000
60,000
Additional information:
dedund
Collections from customers included customer's deposit of P80,000 of which
P20,000-selling price of goods were already shipped and received by the
customer. The shipment of goods was not recorded by the company although
the cost of merchandise was properly excluded in the count.
Coll
Collections from customers also included P30,000 payment from customer
of accounts receivable in which a check dated January 15, 2022 was received.
Collections also included recovery of accounts previously written off
amounting to P8,000.
Dec. 31
300,000
30,000
330,000
100,000
50,000
1,498,000
1,200,000
20,000
10,000
80,000
35,000
120,000
AIR
Included in the payment to trade creditors was a check drawn and recorded
by the company to the supplier in December 2021 amounting to P20,000
which was delivered to the payee on January 10, 2022.
Also the company did not record payment to supplier amounting to P30,000.
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