Accounts Receivables PDF

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Quiz 02: RECEIVABLE and ESTIMATED UNCOLLECTIBLE ACCOUNTS Herald Corp. had the following information relating to its accounts receivable: Accounts receivable, December 31, 2018 1,950, Credit sales 8,100, Collections from customers 7,125, Accounts written-off 187, Estimated uncollectible receivable pe...

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Quiz 02: RECEIVABLE and ESTIMATED UNCOLLECTIBLE ACCOUNTS 1. Herald Corp. had the following information relating receivable: Accounts receivable, December 31, 2018 Credit sales Collections from customers Accounts written-off Estimated uncollectible receivable per aging In the December 31, 2018 statement of financial position, realizable value of the receivable?

to its accounts 1,950,000 8,100,000 7,125,000 187,500 247,500 what is the net

2. On December 31, 2018, the “Receivable” account of Con Company shows a net realizable value of P 1,950,000. Subsidiary details shows the following: Trade accounts receivable 775,000 Trade notes receivable 100,000 Installment receivable, normally due 1 year to 2 years 300,000 Customers’ account reporting credit balances arising from sales return 30,000 Advance payments for purchase of merchandise 150,000 Customers’ accounts reporting credit balances arising from advance payments 20,000 Cash advances to subsidiary 400,000 Claims against insurance company 15,000 Subscription receivable due in 60 days 300,000 Accrued interest receivable 10,000 How much should be presented as “trade receivable”? 3. The following data were taken from the records of Millet Corporation for the year ended December 31, 2018: Sales on account 7,200,000 Accounts receivables written off 50,000 Notes receivable to settle accounts 800,000 Purchases on account 7,800,000 Payments to creditors 6,400,000 Purchase discounts 520,000 Sales returns 30,000 Collections received to settle accounts 4,900,000 Notes given to settle accounts 500,000 Purchase returns 140,000 Payments of notes 200,000 Discounts taken by customers 80,000 Collection on notes receivable 360,000 What is the carrying value of the accounts receivable on December 31, 2018? 4. On May 9, 2018, Paul Corp. sold merchandise with a list price of P 150,000 to Camry on account. Paul allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made FOB shipping point. Paul prepaid P 6,000 of delivery cost for Camry as an accommodation. What amount should Camry remit to Paul as full payment on May 24, 2018? 5. On June 1, 2018. Thomas Corp. sold merchandise with a list price of P 300,000 to Peter Co. on account. Peter was given the following trade discounts of

30% and 20%. Credit terms were 2/15, n/40 and the sale was made FOB destination. On June 10, 2018, when the merchandise were delivered. Peter Co. paid P 5,000 of delivery costs for Thomas as an accommodation. What amount should Peter Co. remit to Thomas Co. as full payment on June 4, 2018? 6. The statement of financial position of Middle Corp. shows the accounts receivable balance at December 31, 2017 as follows: Accounts receivable 450,000 Allowance for bad debts 9,000 During 2018, transactions relating to the accounts were as follows: Sales on account 4,800,000 Cash received from collections of current receivable after discounts of P 80,000 were allowed for prompt payment 3,920,000 Bad accounts previously written off prior to 2017 were recovered 5,000 Customers’ accounts were ascertained to be worthless and were written-off 20,000 The company decided to provide an amount for doubtful accounts by a journal entry at the end of the year 23,000 Accounts receivable of P 700,000 has been pledged to a local bank on a loan of P 400,000. Collections of P 150,000 were made on these receivable (not included in the collections previously given) and applied as partial payment to the loan. How much is the estimated realizable value of accounts receivable at December 31, 2018? 7. Bake Co. has the following account balances at December 31, 2018: Accounts receivable 900,000 Allowance for doubtful accounts (before any provision for 2018 doubtful accounts expense) 16,000 Credit sales for 2018 1,750,000 Bake is considering the following methods of estimating doubtful accounts expense for 2018:  Based on credit sales of 2%  Based on accounts receivable at 5% What amount should Bake charge to doubtful accounts expense under each method? 8. Index Co. showed the following information related to the accounts receivable in order to estimated bad debts through the use of the aging. The credit period of the company is 30 days on the average. Age of Receivables Amount Under 30 days 4,000,000 31 – 60 days 1,500,000 61 – 90 days 1,000,000 91 – 120 days 500,000 121 – 150 days 200,000 151 – 180 days 100,000 The company based on experience has the following percent of collectability:...