ermediate Accounting 1.docxOpen with Google DocsThe following information is available for AVS-CVN Company:Credit sales during 2019Accounts recelvable deemed worthless and written off during 2019Allowance for doubtful accounts at December 31, 201822.P 8,000,000180,000160,000As a result of a revlew and aging of accounts receivable in early January 2020, however, It has been determined that an allowance fordoubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for theyear ended December 31, 2019?a. P130,000b. P110,000P90,000d. P270,000C.23. Terrific Corporation, an equipment distributor, sells a piece of machinery with a list price of P800,000 to Archer Company. Per agreement,Archer will pay P850,000 in one year evidenced by a note. Terrific normally sells at cash price equivalent to 90% of list price. The note has amarket rate of 12%. How much should be recorded as Sales? (The PV of 1 at 12% for 1 year is 0.89)P756,500b. P720,000C. P850,000d. P800,000a.24. On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face value of P4,000,000 and bearinginterest at 12%. The note is due on August 31, 2022 and interest is payable every August 31 starting on August 31, 2018. What is theamount of interest income to be reported on the December 31, 2019 income statement? (The PV of 1 at 12% for 5 years is 0.56)P268,800C. P480,000d. P640,000a.b.P160,00025. On July 1, 2019, Optimistic Company sold a machine costing P500,000 with accumulated depreciation of P380,000. On the date of sale,Optimistic received as consideration for the sale, a P300,000 noninterest-bearing note, due July 1, 2022. There was no established exchangeprice for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type at July 1, 2019 was 12%and 13% on December 31, 2019. In relation to this transaction, what is the total income to be recognized in Optimistic's 2019 statement ofcomprehensive income? (Round PVF to 4 decimals)P119,165P101,445c. P180,000d. P106,3523 / 5a.PageQ +b.

22) The amount to be charged as bad debt expense is shown below: Opening balance of allowance…

The following information is available for AVS-CVN Company: Credit sales during 2019 Accounts recelvable deemed worthless and written off during 2019 22. P 8,000,000 180,000 160,000 Allowance for doubtful accounts at December 31, 2018 As a result of a review and aging of accounts recelvable in early January 2020, however, It has been determined that an allowance fo doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for th year ended December 31, 20197 a. P130,000 b. P110,000 C. P90,000 d. P270,000

The following information is available for AVS-CVN Company: Credit sales during 2019 Accounts recelvable deemed worthless and written off during 2019 22. P 8,000,000 180,000 160,000 Allowance for doubtful accounts at December 31, 2018 As a result of a review and aging of accounts recelvable in early January 2020, however, It has been determined that an allowance fo doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for th year ended December 31, 20197 a. P130,000 b. P110,000 C. P90,000 d. P270,000

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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2 Nissan Inc. prepared an aging of its accounts receivable at December 31,2020 and determined that the net realizable value of the receivables was P250,000. Additional information is available as follows: Allowance for Bad Debts, 12/31/19 - debit balance Accounts written off as uncollectible during 2020 Accounts Receivable at 12/31/20 adjusted Uncollectible accounts recovery during 2020 What is amount of bad debts expense that shall be presented in Nissan's 2020 statement of financial performance? P 28,000 23,000 270,000 5,000
accounts receivable
The Garware Company uses allowance method to recognize uncollectible accounts expense. It provides you the following selected information Accounts receivable on December 31 2020 RO 280000 Required balance in Allowance for Doubtful Accounts account on December 31 2020 RO 4000 Existing balance in Allowance for Doubtful Accounts account on December 31 2019 RO 3500 The journal entry to recognize uncollectible accounts expense on December 31 2017 is a. Dr Uncollectible Accounts Expense 4000 and Cr Allowance for Doubtful Accounts 4000 b. Dr Uncollectible Accounts Expense 500 and Cr Allowance for Doubtful Accounts 500 c. Dr Accounts Receivable 3500 Cr Allowance for Uncollectible Accounts Expense 3500 d. Dr Accounts Receivable 3500 Cr Uncollectible Accounts Expense 3500
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The net realizable value of the accounts receivable at December 31, 2021 isoverstated (understated) by: Please include solutions. Thank you!
RCM Company has $55,000 in accounts receivable and a debit balance of $800 in the Allowance for Doubtful Accounts on December 31, 2019. Which of the following is part of the journal entry to estimate the bad debt expense and allowance for doubtful accounts assuming that RCM estimates that 4.5% of accounts receivable will be uncollectible? O Debit $1,675 Credit $1,675 O Debit $3,275 O None of the choices are correct. O Credit $3,275
5. Guernsey Company began operations on January 1, 2021. On December 31, 2021, the entity provided doubtful accounts based on 1% of annual credit sales. On January 1, 2022, the entity changed the method of determining the allowance for doubtful accounts by aging of accounts receivable. Days past invoice date Percent uncollectible 0 - 30 31 90 91 - 180 Over 180 1 5 20 80 In addition, the entity wrote off all accounts receivable that were over 1 year old. The entity provided the following additional information: 0 - 30 31 - 90 91 - 180 Over 180 Credit sales Collections, including recovery Accounts written off Recovery of accounts previously written off Days past invoice date at December 31 2022 2021 3,000,000 2,800,000 2,915,000 2,400,000 27,000 7,000 300,000 80,000 60,000 25,000 None None 250,000 90,000 45,000 15,000 a. What is the allowance for doubtful accounts on December 31, 2021? b. What is the allowance for doubtful accounts on December 31, 2022? c. What amount should be reported…
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FDNACCT Co. has the following balances on December 31, 2021 before any adjustments: Accounts Receivable = P920,000 Allowance for Doubtful Accounts = P3,250 Total credit sales = P3,000,000 Provision for doubtful accounts is estimated at 5% of Accounts Receivable. How much should be credited to the Allowance for Doubtful Accounts as adjustment?