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AR

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137 views8 pages

AR

Uploaded by

Sharmaine Beran
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© © All Rights Reserved
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teenth. ree _ CHAPTER 16 | ACCOUNTS RECEIVABLE Problem 16-1 (AICPA Adapted) me Company provided the following information for the current Accounts receivable on Ji Credit sales Petia naa Collections from customers, excluding recovery 4,750,000 Accounts written off 125,000 Collection of accounts written off in prior year (customer credit was not reestablished) 25,000 Estimated uncollectible receivables per aging e of receivables at December 31 165,000 What is the balance of accounts receivable, before allowance for _ doubtful accounts onDecember31? "eR a by a. 1,825,000 b. 1,850,000 c. d. . 1,950,000 |. 1,990,000 Solution 16-1 Answer a Accounts receivable - January 1,300,000 Add: Credit sales 5,400,000 Total 6,700,000 Less: Collection from customers "4,750,000 Accounts written off ~ 125,000 4,875,000 Accounts receivable - December 31 1,825,000 The recovery of accounts written off does not affect the balance of accounts receivable because the effect is offsetting. 205 ot Problem 16-2 (AICPA Adapted) Jay Company provided the following data for the cure! ie Accounts receivable, January 1 700,008 ; ary 35000 retums sy ‘Accounts written off 2,150,000 ae 50,000 110,000 Solution 16-2 Answer d sleiie ‘Acco je — Januaryl Cre mee Total 3,350,000 Less: Col from customers yes : Ace ritten off — 5, Sales returns 1.000 ee Accounts receivable ~ December 31 pe 085,000 Accounts receivable 110,000 1 Le lowance for doubtful accounts \ 60,000 lowance for sales returns -_$0,000 ae Net realizable value Be ‘The amortized cost of accounts receivable isthe same as the net i Nae 206 i ‘What total amount should be . sterner i a 940,000 930,000 (20,000) 30,000 940,000 ‘The selling price of goods ‘on consignment is excluded from accounts receivable because the goods are still unsold. The cost of the consi igned goods of P200,000 (260,000 / 130%) should be included in inventory. : ‘The security deposit is a noncurrent receivable, 207 Problem 16-4 (AICPA. Adapted) Faith Company provided the following informa om following information relating to current 4,000,000, ¢ 8,400,000) (2,000,000) 4,800,000 (4,400,000 8,000,000 4,200,000 Gross margin on sales What amount shouldbe reported as acount eeivableon Devernber 317 @ 8,200,000 ». 6,200,000 ©. 2,000,000 4. 4,200,000 Solution 16-4 Answer b Inventory January | 4,800,000 Purchases —ic00.a00 is 12,800,000 ai (4,400,000) Cost of goods sold 400,000" Gross margin on sales 420,000 Gross sales 12,600,000 (2,000,000 10,600,000 4,000,000 14,600,000 Accounts receivabl (4:400,000) Accounts receivable - December 31 $200,000, 208 Were weet oe fie rN problem 165 (AICp, Adapts Steven Company provi ded . | year of operations: ‘he following information during the fist. urchases forth Year (ys 7,000,000 FY on Des (aay - < 7,000, 7 on December 31 ; I 00 All merchandise was marked $ : i t are onacredit basisand all recive go abse cost. All sales ‘What amount shoul: December 31? ld be reported as accounts receivable on a.* 1,000,000 b. 3,840,000. c. 5,000,000 d. 5,800,000 Solution 16-5 Answer b Purchases ry « Sales ratio (100% + 40%) 209 OT Oe Problem 16-6 (LAA) mel ‘was given a trade discou 4/10, 1/30. ion, freight The woods wee shipped FOB destinies EoD the customer retumed damaged, snisreceivableon December What isthe net realizable valu ofthe accounts reoeiva i > 31, 20217 \ FOB destination means that the seers responsible forthe freight change. Freight collect means the common carer will collet the freight charge ffomthebuyertobe deducted fom tiaccouns receivable upon emitance ‘or payment from the buyer. ordof accounting CASh ber 27,2021, GiB: pi bythe casomar as? : me ldat P00 000 ‘ ‘problem 16-7 (AICEA 4. ris © onSune 12021, Pit Compan, spn a4 (000,000 to Burr, 'Y Sold merchandise with alist price of PEs0%, COUN Pit alowed ese at Piaf | 1, Whatamount shouldbe reported | 2. Whatamount was received by Pit from Bur as a. 2,744,000 June 11,2021, the customer pin fu Creditterms were 2/10, 190 ent te stn, Fietprepsid P20, 600 of deter esas roe FOB siping point. aa Stl revenue? dele: + He He remittance in full? Total remittance from Burr Note thatthe customer paid the acount in full within the discount period. FOB shipping point means the buyer is responsible forthe freight charge. Freight prepaid means the seller prepaid the freight charge as an acootunbolation to bechaged gale he oyeropca fl entance a1 CC O00 OC Problem 16-8 (PHILCPA. Adapted) inthe accounts Honduras Company revealed a balance of P8,200,000 in the receivable control account at year-end, ‘An analysis ofthe accounts receivable showed the following: ‘Accounts known to be worthless Advance Advance Customer ; scfm les retums $00,000 interest icon bonds 9,000 Trade accout rane aes 3500.00 Subscription rece 30 days 0 signed accounts is 00,000) 150.00 850,000 officers, due curently 150,000 Trad accounts on which postdted checks are eld 5 agg and no entries were made on geceipt of checks) ___200,000 Teal ‘00000 sivable at ‘What amount should be reported as trade accounts receivable year-end? @) 4,650,000 ® 4,700,000 ©. 4,150,000 4. 4,050,000 Solution 16-8 Answer a unassigned ~ assigned ym officers ‘Accounts on which postdated checks are held Total trade accounts receivable 212 foe a le Problem 164 (AICPA Adapred) ‘When examining the: jt j balances relating os Be Company itis ascertained that Total collections from customers, excluding cash sales, ( 2,190,000) 6,000,000, 8,400,000 1, What amount should be reported as east of goods 3014? 8,400,000 (6,000,000) (30,000) A unt? 2.350.000 2. What amount should be reported as sales on account? 420,000 ( $0,000) Allowance for doubtful accounts December 31 370,000 i Accounts receivable 2,350,000 3. realizable value of accounts receivable at (370000) mice 1,980,000 219

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