Ruby Company sold accounts receivable without recourse with face amount of Php5,000,000. The factor withheld 10% of the accounts factored as protection against customer returns and other adjustments. The entity had previously established an allowance for doubtful accounts of Php100,000 for these асcounts. By year-end, the entity had collected the factor's holdback there being no customer returns and other adjustment. How much is the Commission charged by the factor if the loss on factoring amounted to

Ruby Company sold accounts receivable without recourse with face amount of Php5,000,000. The factor withheld 10% of the accounts factored as protection against customer returns and other adjustments. The entity had previously established an allowance for doubtful accounts of Php100,000 for these асcounts. By year-end, the entity had collected the factor's holdback there being no customer returns and other adjustment. How much is the Commission charged by the factor if the loss on factoring amounted to

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABE Company factored P100,000 of its accounts receivable to Cee Company for P85,000. An allowance for bad debts equal to P3,000 was previously established for the account factored. Cee Company withheld 5% of the purchase price as protection against sales returns and allowance. Determine the following assuming sale of receivable is without recourse or guarantee. 1. Cash received 2. Cost of factoring
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $64,800 and $1,600, respectively. During Year 2, Kincaid reported $159,000 of credit sales, wrote off $1,300 of receivables as uncollectible, and collected cash from receivables amounting to $173,500. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. What is the amount of uncollectible accounts expense that will be reported on the Year 2 income statement? Multiple Choice $1,590 $648 $1,300 $1,735
On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of recording the collection of the reestablished receivable on April 4, Year 2? A. B. ܫ C. D. Assets 1,050 (1,050) 1,050 1,050 1,050 (1,050) Multiple Choice Option B Option D Option C Option A Balance Sheet =Liabilities + ΝΑ ΝΑ ΝΑ ΝΑ Stockholders' Equity ΝΑ 1,050 1,050 ΝΑ Income Statement Revenue ΝΑ 1,050 ΝΑ ΝΑ Expense ΝΑ ΝΑ (1,050) ΝΑ = Net Income ΝΑ 1,050 1,050 ΝΑ Statement of Cash Flows ΝΑ 1,050 OA 1,050 OA 1,050 OA
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $69,600 and $2,600, respectively. During the year Kincaid reported $183,000 of credit sales. Kincaid wrote off $1,650 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $215,500. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. The net realizable value of receivables appearing on Kincaid's Year 2 balance sheet will amount to: Multiple Choice O O $33,620. $32,670. $37,100. $35,450.
24. Miller Company's allowance for doubtful accounts was P1,000,000 at the end 20XX and P900,000 at the end of 20XX-1. For the year ended December 31, 20XX, Mill reported doubtful accounts expense of P160,000 in its income statement. What amount did Mill debit to the appropriate account in 20XX to write off uncollectible accounts?
How much is the adjusted balance of the allowance for doubtful accounts as of December 31, 2016?
On January 1, 2022, Amoeba Company changed its method of accounting for bad debts from the direct write-off method to the allowance method. The company's controller determined that an allowance of P 30,000 should be established on that date. Ignoring income taxes, what is the adjustment required to record the change? a. Debit - Retained Earnings, P 30,000; Credit - Allowance for Doubtful Accounts, P 30,000. b. Debit - Doubtful Accounts Expense, P 30,000; Credit - Allowance for Doubtful Accounts, P 30,000. c. Debit - Doubtful Accounts Expense, P 30,000; Credit - Retained Earnings, P 30,000. d. Debit - Retained Earnings, P 30,000; Credit - Doubtful Accounts Expense, P 30,000.
At the end of its annual accounting period, Midi Company estimated its bad debts as 0.74% of its $1,760,000 of credit sales made during the year. On December 31, Midi made an addition to its Allowance for Doubtful Accounts equal to that amount. On the following February 1, management decided that the $2,600 account of Catherine Hicks was uncollectible and wrote it off as a bad debt. Four months later, on June 5, Hicks unexpectedly paid the amount previously written off. Give the journal entries required to record these transactions. View transaction list es Journal entry worksheet 1 2 3 4 Record the entry for estimated bad debts. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit
Dat
The recorded allowance for doubtful accounts should be increased by
At year-end December 31, Chan Company estimates its bad debts as 0.30% of its annual credit sales of $812, 000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $406 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. Journal entry worksheet Record the estimated bad debts expense. Note: Enter debits before credits. Please explain and elaborate!
Pichai Party Supplies reported an allowance for doubtful accounts of $24,000 at the beginning of the fiscal year and $32,000 at the end of the fiscal year. During the year, the company recognized bad debt expense of $30,000. What amount did the company record as accounts receivables write-offs during the year? $30,000. $22,000. None of the answers are correct. $32,000. $24,000.