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TRADE AND OTHER RECEIVABLES
Non - Trade Receivables
Advances to or receivables from shareholders and etc. Non - Current Receivables Advances to Affiliates Non - Current Receivables Advances to Suppliers Current Receivable Subsciption Receivable Deduction in Equity Creditor's Account with debit balance Current Receivable Special deposits on contract bids Non - Current Receivables Accrued Income Current Receivable Claims Receivable Current Receivable Sample Problem Accounts Receivable - AB Company 1, Less: Sales Returns and Allowances 100 900 Accounts Receivable - CD Enterprises 600 Net Accounts Receiavble 1, Accounts Receivable - Chimmy Company 1, Less: Sales Returns and Allowances 400 Sales Discount 20 420 Cash Received 580 Accounts Receivable - December 31, 2020 525, Sales on Account 145, Less: Collection on Account 86, Written - Off Amount 8, Bad Debts Expense 54,000 (3,000) Adjusted Cash Balance 522, Less: Cash Realizable Value 480, Change in the Cash Realizable Value from the Balance 42, Required Allowance 54, Less: Allowance Balance 45, Bad Debts Expense for 2021 9, Accounts Receivable 746, Multiply by: 6% Required Allowance 44, Less: Allowance for Bad Debts 14, Bad Debts Expense 30,
CASH DISCOUNT
Jimin Company sold merchandise with a total selling price of P40,000 to
- Current Receivables Seolhyun Company with terms 5/15, n/30.
- Current Receivables ent Receivable Gross Method: ction in Equity ent Receivable Entries to record sale before discount:
- Current Receivables Accounts Receivable 40, ent Receivable Sales Revenue ent Receivable Entire to record paid sale with discount: Cash 38, Sales Discount 2, Accounts Receivable Entries to record paid sale without discount: Cash 40, Accounts Receivable Net Method: Entries to record sale before discount: Accounts Receivable 38, Sales Revenue Entire to record paid sale after discount: Cash 38, Accounts Receivable Entries to record paid sale without discount: Cash 40, Accounts Receivable Sales Discount Forfeited UNCOLLECTIBLE ACCOUNTS Direct Write-off Method (not advisable to use) Uncollectible Accounts Expense xxx,xxx Accounts Receivable Allowance Method Year-end Adjustments: Uncollectible Accounts Expense xxx,xxx Allowance for Uncollectible Accounts Write-off during the year: Allowance for Uncollectible Accounts xxx,xxx Accounts Receivable Incase of reinstatement: Accounts Receivable xxx,xxx
Problem 1 - ACCOUNT RECEIVABLES Cessy Company of P40,000 to Account Receivable Balance Credit Sales Sales Returns Accounts Written-off Sales Returns - Future Uncollectible Accounts - Future Collections 40, How much is the net realizable value of accounts receivable to be presented in the December 31, 2020 Statement of Financial Position? Accounts Receivable, January 1 40,000 Add: Credit Sales Less: Sales Returns Accounts Written-off Collections during the Year 40,000 Accounts Receivable, December 31 Less: Allowance for Future Sales Returns Allowance for Uncollectible Accounts Net Realizable Value Problem 2 - ACCOUNT RECEIVABLES 38,000 Melody Company Aging Receivables: 3% 0 - 30 Days 10% 31 - 60 Days 15% over 60 Days 38,000 Net Credit Sales Allowance for Uncollectible Accounts What amount should be recognized in the adjusting entries as uncollectible 38,000 accounts expense for the current year? 2, Aging of Receivables: % Period 3% 0 - 30 Days 10% 31 - 60 Days 15% over 60 Days Required balance of the allowance account xxx,xxx Less: Credit Balance in the allowance accounts Uncollectible Accounts Expense Problem 3 - ACCOUNTS RECEIVABLES Pilot Company xxx,xxx Accounts Receivable Net Realizable Value Allowance for uncollectible Accounts xxx,xxx Accounts Written-off - Past Accounts Written-off - Present How much is the uncollectible accounts expense for the year ended December 31, 2020
xxx,xxx Allowance for Uncollectible Accounts, Dec. 2019 Add: Recovery of Past Written-off Accounts Uncollectible Accounts Expense xxx,xxx Less: Written-off during the year Allowance for Uncollectible Accounts, Dec. 2020 Problem 4 - NOTES RECEIVABLES Jiyeon Company Machinery Noninterest-bearing Note Case 1: How much is the carrying amount of the notereceivable as at December 31, 2019 500,000 x
1-(12%^ -10)
Case 2: How much is the unearned interest oncome related to the note at the point of sale? Face Value of the Note Less: Present Value of Annuual payments Unearned Interest Income Case 3: Howmuch is the gain on sale of machinery to be reported at 2019 year-end? Present Value of Annuual payments Less: Carrying amount of Machinery Gain on Sale of Machinery Notes Receivable Machinery Unearned Interest Income Gain on Sale of Machinery Case 4: How much is the interest Income for 2020? Present Value of Annuual payments Multiply by: Interest Rate Interest Income, December 31, 2020 Case 5: How much is the carrying amount of the note receivable as at December 31, 202 Note Receivable, December 31, 2019 Less: First Payment Made Note Receivable, December 31, 2020 Unearned Inreset Income, December 31, 2019 Less: Interest Earned for 2020 Unearned Interest Income, December 31, 2020 Note Receivable, December 31, 2020
Problem 15 467,000 Net Credit Sales 3,000,000 Multiply By: 80,000 Doubtful Accounts Expense 68,000 Less: Credit Balance in the allowance accounts 90,000 Adjusted Doubtful Accounts Expense 64, 2,530,000 Problem 16 counts receivable to be presented Required Balance of the Allowance Accounts Less: Allowance for Doubtful Accounts Doubtful Accounts Expense 467, 3,000,000 Problem 17 80, 68,000 Accounts Receivable 2,530,000 2,678,000 Allowance for Doubtful Accounts 789, 90,000 Sales on Account 64,000 154,000 Sales Returns and Allowances 635,000 Collections from Customers Accounts Written-off Previously written-off 4,000,000 Sales on Account 2,000,000 Multiply By: 1,500,000 Doubtful Accounts Expense 30,000, (50,000) Doubtful Accounts Expense Allowance for Doubtful Accounts justing entries as uncollectible Problem 18 Total Amount Uncollectible Accounts Receivable 4,000,000 120,000 Multiply By: 2,000,000 200,000 Required Allowance 1,500,000 225,000 Less: Allowance for Doubtful Accounts 545,000 Decrease in Allowance - Expense for the Year (50,000) 495,000 Allowance for Doubtful Account Doubtful Account Expense Dec. 2019 Dec. 2020 1,546,000 1,685, 1,490,000 1,638, 56,000 47, 96, 143, the year ended December 31, 2020
Problem 20 % Period 1% Current 2,000,000 3% 1 - 30 5,000,000 6% 31 - 60 12% 61 - 90 ereceivable as at December 31, 2019? 30% Over 90 Required balance of the allowance account Less: Credit Balance in the allowance accounts Uncollectible Accounts Expense Allowance for Doubtful Accounts Accounts Receivable elated to the note at the point Problem 21 % Period 5,000,000 1% Current (2,825,000) 3% 1 - 30 2,175,000 6% 31 - 60 12% 61 - 90 o be reported at 2019 year-end? 30% Over 90 Required balance of the allowance account 2,825,000 Add: Credit Balance in the allowance accounts (2,000,000) Uncollectible Accounts Expense 825, Allowance for Doubtful Accounts 5,000,000 Accounts Receivable 2,000, 2,175,000 Problem 22 825, Sales on Account Multiply: Estimated Uncollectible Accounts (%) Uncollectible Accounts Expense 2,825, 12% Doubtful Accounts Expense 339,000 Allowance for Doubtful Accounts e receivable as at December 31, 2020? 5,000, (500,000) 4,500, 2,175, (339,000) 1,836, 4,500,
he allowance accounts 1, 17, owance Accounts 192, ful Accounts (105,000) 87, 500, (33,000) 1,400, 50, 1,150, 35, 5, 1,400, 2% 28, 28, ful Accounts 28, 500, 4% 20, ful Accounts (33,000) ense for the Year (13,000) 13, 13,
Total Amount Uncollectible
- 120,000 1, - 12,000 - 10,000 - 5,000 - 8,000 2,
- owance account 5, - 4, he allowance accounts (700) - 4, - 4,
- 120,000 1, Total Amount Uncollectible
- owance account 5,
- he allowance accounts - 5, - 5, - 5, - 550, - 5, ctible Accounts (%) 1% - 5,
- ful Accounts 5,
