Use the following information for questions 8 to 9. The balance sheet for the Dixie Corporation on December 31, 2007 includes the following receivables balances: Notes Receivable Less notes discounted P365,000 155,000 P210,000 Accounts Receivable Less allowance for doubtful accounts P856,000 41,500 814,500 Selected ransactions during 2008 included the following: a. Notes received in settlement of accounts totaled P825,000. b. Notes receivable discounted as of December 31, 2007, were paid at maturity with the exception of one P30,000 note on which the company had to pay the bank P30,900, which included interest and protest fees. It is expected that recovery will be made on this note early 2009. Customers' notes of P600,000 were discounted with recourse during c. the year, proceeds from their transfer being P585,000. Of this total, P480,000 matured during the year without notice of protest. h. Notes receivable collected during the year totaled P270,000 and interest collected was P24,500. Determine the adjusted balances of the following accounts as of December 31, 2008: Notes Receivable (including notes receivable discounted). a. P320,000 Notes Receivable Discounted a. P155,000 8. b. P365,000 c. P165,000 d. P285,000 9. b. P600,000 c. P120,000 d. P105,000
Use the following information for questions 8 to 9. The balance sheet for the Dixie Corporation on December 31, 2007 includes the following receivables balances: Notes Receivable Less notes discounted P365,000 155,000 P210,000 Accounts Receivable Less allowance for doubtful accounts P856,000 41,500 814,500 Selected ransactions during 2008 included the following: a. Notes received in settlement of accounts totaled P825,000. b. Notes receivable discounted as of December 31, 2007, were paid at maturity with the exception of one P30,000 note on which the company had to pay the bank P30,900, which included interest and protest fees. It is expected that recovery will be made on this note early 2009. Customers' notes of P600,000 were discounted with recourse during c. the year, proceeds from their transfer being P585,000. Of this total, P480,000 matured during the year without notice of protest. h. Notes receivable collected during the year totaled P270,000 and interest collected was P24,500. Determine the adjusted balances of the following accounts as of December 31, 2008: Notes Receivable (including notes receivable discounted). a. P320,000 Notes Receivable Discounted a. P155,000 8. b. P365,000 c. P165,000 d. P285,000 9. b. P600,000 c. P120,000 d. P105,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
Transcribed Image Text:Use the following information for questions 8 to 9.
The balance sheet for the Dixie Corporation on December 31, 2007 includes the following
receivables balances:
Notes Receivable
Less notes discounted
P365,000
155,000
P210,000
Accounts Receivable
Less allowance for doubtful accounts
P856,000
41,500
814,500
Selected ransactions during 2008 included the following:
Notes received in settlement of accounts totaled P825,000.
а.
b. Notes receivable discounted as of December 31, 2007, were paid at
maturity with the exception of one P30,000 note on which the
company had to pay the bank P30,900, which included interest and
protest fees. It is expected that recovery will be made on this note
early 2009.
Customers' notes of P600,000 were discounted with recourse during
the year, proceeds from their transfer being P585,000. Of this total,
P480,000 matured during the year without notice of protest.
С.
h.
Notes receivable collected during the year totaled P270,000 and
interest collected was P24,500.
Determine the adjusted balances of the following accounts as of December 31,
2008:
Notes Receivable (including notes receivable discounted).
а. Р320,000
Notes Receivable Discounted
8.
b. P365,000
c. P165,00o
d. P285,000
9.
а. Р155,000
b. Р600,000
c. P120,000
d. P105,000
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