PROBLEM NO. 1 The December 31, 2019 statement of financial position of Help Company included the following information: Notes receivable P 598,000 Less: NR discounted (380,000) P 218,000 Accounts receivable P2,240,000 Less: Allow. for D.A. ( 141,000) 2,099,000 Total receivables P2,317,000 The following transactions occurred during 2020: 1. Sales on account P8,812,000 2. Collections on accounts 8,410,000 3. Accounts receivable written off as uncollectible 138,000 4. Notes receivable collected 290,000 5. Customer notes received in payment of accounts receivable 740,000 6. Notes receivable discounted paid at maturity 360,000 7. Notes receivable discounted defaulted, including interest of P200 and a P100 fee. This amount is expected to be collected in 2021 20,300 8. Proceeds from customer notes discounted (face value P450,000, accrued interest income, P2,000) 448,500 9. Collections on accounts previously written off 5,000 10. Sales returns and allowances 20,000 11. Required allowance for doubtful accounts based on impairment assessment at year end 12,000 The adjusted balance of Accounts Receivable as of December 31, 2020 is 1,744,000 please explain why is it 1,744,000. thank you.
PROBLEM NO. 1
The December 31, 2019
|
Notes receivable |
P 598,000 |
|
|
Less: NR discounted |
(380,000) |
P 218,000 |
|
|
|
|
|
|
P2,240,000 |
|
|
Less: Allow. for D.A. |
( 141,000) |
2,099,000 |
|
Total receivables |
|
P2,317,000 |
The following transactions occurred during 2020:
|
1. |
Sales on account |
P8,812,000 |
|
2. |
Collections on accounts |
8,410,000 |
|
3. |
Accounts receivable written off as uncollectible |
138,000 |
|
4. |
Notes receivable collected |
290,000 |
|
5. |
Customer notes received in payment of accounts receivable |
740,000 |
|
6. |
Notes receivable discounted paid at maturity |
360,000 |
|
7. |
Notes receivable discounted defaulted, including interest of P200 and a P100 fee. This amount is expected to be collected in 2021 |
20,300 |
|
8. |
Proceeds from customer notes discounted (face value P450,000, accrued interest income, P2,000) |
448,500 |
|
9. |
Collections on accounts previously written off |
5,000 |
|
10. |
Sales returns and allowances |
20,000 |
|
11. |
Required allowance for doubtful accounts based on impairment assessment at year end |
12,000 |
The adjusted balance of Accounts Receivable as of December 31, 2020 is 1,744,000
please explain why is it 1,744,000. thank you.
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