The following transactions transpired during the year for Teresa Company: • On January 1,2021, Teresa Company sold an inventory to Maria Company for ₱1,500,000. A note was received in exchange for the product which provides that three (3) equal annual installments will be made every December 31,2021, starting December 31,2021. The effective rate of the notes receivable which is compounded annually is 12%. • On December 25,2021, Teresa company originated a receivable of ₱100,000 from Marisa. It is accounting its sales under the gross method. The credit term is 2/10, n/30. Teresa, However, estimates that only 50% cash discounts will be availed by Marisa. 60% of the customer paid on January 4,2022. • On December 31,2021, Teresa Co. sold goods costing ₱300,000 and with sales price of ₱550,000 to Perfina, Inc. on account to induce sale, Teresa Co. provides its buyer the right to return goods within 30 days upon purchase if the buyers are not satisfied with the goods. Teresa Co. can reliably estimate that 30% of the goods sold will be returned within the agreed period of time. On January 5,2022, 45% of the goods were actually returned and the balance of receivable was collected. • Teresa Company uses perpetual inventory system in recording its inventories. Bassed on the above data, answer the following: 1. How much is the interest income to be recognized in 2021 in relation to the sale of Maria Company assuming the first payment is to be made on January 1,2021? a. ₱180,000 c. ₱160,000 b. ₱113,088 d. ₱60,000 2. How much is the amount of receivable to be reported on December 31, 2021 in relation to the sale to Marisa? a. ₱100,000 c. ₱60,000 b. ₱99,000 d. ₱58,800 3. How much is the amount of receivable to be reported on December 31,2021 in relation to the sale of Perfina? a. ₱385,000 c. ₱300,000 b. ₱550,000 d. ₱Nil
The following transactions transpired during the year for Teresa Company:
• On January 1,2021, Teresa Company sold an inventory to Maria Company for ₱1,500,000. A note was received in exchange for the product which provides that three (3) equal annual installments will be made every December 31,2021, starting December 31,2021. The effective rate of the notes receivable which is compounded annually is 12%.
• On December 25,2021, Teresa company originated a receivable of ₱100,000 from Marisa. It is accounting its sales under the gross method. The credit term is 2/10, n/30. Teresa, However, estimates that only 50% cash discounts will be availed by Marisa. 60% of the customer paid on January 4,2022.
• On December 31,2021, Teresa Co. sold goods costing ₱300,000 and with sales price of ₱550,000 to Perfina, Inc. on account to induce sale, Teresa Co. provides its buyer the right to return goods within 30 days upon purchase if the buyers are not satisfied with the goods. Teresa Co. can reliably estimate that 30% of the goods sold will be returned within the agreed period of time. On January 5,2022, 45% of the goods were actually returned and the balance of receivable was collected.
• Teresa Company uses perpetual inventory system in recording its inventories.
Bassed on the above data, answer the following:
1. How much is the interest income to be recognized in 2021 in relation to the sale of Maria Company assuming the first payment is to be made on January 1,2021?
a. ₱180,000 c. ₱160,000
b. ₱113,088 d. ₱60,000
2. How much is the amount of receivable to be reported on December 31, 2021 in relation to the sale to Marisa?
a. ₱100,000 c. ₱60,000
b. ₱99,000 d. ₱58,800
3. How much is the amount of receivable to be reported on December 31,2021 in relation to the sale of Perfina?
a. ₱385,000 c. ₱300,000
b. ₱550,000 d. ₱Nil
4. How much is the amount of receivable to be reported on December 31,2021 in relation to the sale of Perfina assuming instead that Teresa cannot reliably estimate future returns?
a. ₱385,000 c. ₱300,000
b. ₱550,000 d. ₱Nil
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