The December 31, 2019 statement of financial position of Help Company included the following information: 598,000 (380,000) Notes receivable Less: NR discounted P 218,000 Accounts receivable Less: Allow. for D.A. Total receivables P2,240,000 ( 141,000) 2,099,000 P2,317,000 The following transactions occurred during 2020: P8,812,000 8,410,000 Sales on account Collections on accounts Accounts receivable written off as uncollectible Notes receivable collected Customer notes received in payment of accounts receivable Notes receivable discounted paid at maturity Notes receivable discounted defaulted, including interest of P200 and a P100 fee. This 1. 2. 3. 138,000 290,000 4. 5. 740,000 6. 360,000 7. amount is expected to be collected in 2021 Proceeds from customer notes discounted (face value P450,000, accrued interest income, P2,000) Collections on accounts previously written off Sales returns and allowances Required allowance for doubtful accounts based on impairment assessment at year end 20,300 8. 448,500 9. 5,000 20,000 10. 11. 12,000
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.
Questions:
1. The amount to be reported as trade and other receivables in the entity's
2. The adjusted balance of
3. The adjusted balance of Notes Receivable as of December 31, 2020 is?
4. The loss from discounting of notes receivables is?
![The December 31, 2019 statement of financial position of
Help Company included the following information:
Notes receivable
Less: NR discounted
598,000
(380,000)
P 218,000
Accounts receivable
Less: Allow. for D.A.
Total receivables
P2,240,000
( 141,000)
2,099,000
P2,317,000
The following transactions occurred during 2020:
P8,812,000
8,410,000
Sales on account
Collections on accounts
Accounts receivable written off as
uncollectible
1.
2.
3.
138,000
290,000
Notes receivable collected
Customer notes received in payment
of accounts receivable
Notes receivable discounted paid at
maturity
Notes receivable discounted
defaulted, including interest of
P200 and a P100 fee. This
4.
5.
740,000
6.
360,000
7.
amount is expected to be collected
in 2021
Proceeds from customer notes
20,300
8.
discounted (face value P450,000,
accrued interest income, P2,000)
Collections on accounts previously
written off
Sales returns and allowances
Required allowance for doubtful
accounts based on impairment
assessment at year end
448,500
9.
5,000
20,000
10.
11.
12,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44f9114f-8657-4aa3-bf39-7c1fda7c7c70%2F2df64388-247a-450f-b56d-9a8418551c43%2Fawlrkkh_processed.jpeg&w=3840&q=75)
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