Miami Corporation reported the following information at year- end:

Trade Accounts receivable

Allowance for uncollectible accounts
Claim against shipper for goods lost in transit in November
Selling price of unsold goods sent by Miami on consignment at 130%
of cost and not included in Miami's ending inventory
Security deposit on lease of warehouse used for storing some
inventories

What total amount should be reported as trade and other receivables

under current assets at year- end?

Trade Accounts receivable

Allowance for uncollectible accounts
Claim against shipper for goods lost in transit in November
Total
 930,000.00
- 20,000.00
30,000.00

260,000.00

300,000.00

930,000.00
- 20,000.00
30,000.00
940,000.00
Steven Company provided the following information during the first
year of operations:

Total merchandise purchases for the year

Merchandise inventory on December 31
Collections from customers

All merchandise was marked to sell at 140% above cost. All sales
are on a credit basis and all receivables are collectible.

What amount should be reported as accounts receivable on

December 31?

Purchases
Less: Inventory, Ending
Cost of Goods Sold
Sales
Less: Collections from customers
Accounts Receivable
7,000,000.00
1,400,000.00
4,000,000.00

7,000,000.00
1,400,000.00
5,600,000.00
7,840,000.00
4,000,000.00
3,840,000.00
 When examining the accounts of Brute Company, it is ascertained that
balances relating to both receivables and payables are included in a
single controlling account called "receivables control" with a debit balance
of Php 4,850,000. An analysis of the make- up of this account revealed
the following:

Accounts receivable- customers

Trade accounts receivable- officers
Debit balances- creditors
Postdated checks from customers
Subscription receivable
Accounts payable for merchandise
Credit balances in customer's accounts
Cash received in advance from customers
Expected bad debts

After further analysis of the aged accounts receivable, it is determined

that the allowance foe doubtful accounts should be Php 200,000.

1 What is the net realizable value of accounts receivable

2 What amount should be reported as accounts payable?

1 Accounts receivable- customers

Postdated checks from customers

Less: Expected Bad Debts

Allowance for doubtful accounts

2 Accounts Payable
ebit balance

Debit Credit
7,800,000.00
500,000.00
300,000.00
400,000.00
800,000.00
450,000.00
200,000.00
100,000.00
150,000.00

7,800,000.00
400,000.00
8,200,000.00
150,000.00
200,000.00
7,850,000.00

450,000.00
 Wonder Company provided the following transactions affecting accounts
receivable during the current year:

Sales- cash and credit

Cash received from credit customers, all of whome took advantage of the
discount feature of the credit terms 4/10, n/30
Cash received from cash customers
Accounts receivable written off as worthless
Credit memorandum issued to credit customers for sales returns and
allowances
Cash refunds given to cash customers for sales returns and allowances
Recoveries on accounts receivable written off as uncollectible in prior
periods not included in cash received from customers stated above

Balances on January 1

Accounts receivable
Allowance for doubtful accounts

The entity provided for doubtful accounts expense by crediting allowance

for doubtful accounts in the amount of Php 70,000 for the current year.

1 What amount should be reported as accounts receivable on December 31?

2 What amount should be reported as allowance for doubtful accounts
on December 31?

1 Cash and Credit Sales

Less: Cash Received
Credit Sales
Less: Cash received from credit
Sales Discount
Accounts Receivable
Add: Accounts Receivable, Jan 1
Total
Less: Written off
Sales Return and Allowances
Accounts Receivable

AR collected
Sales Discounts

2 Allowance for doubtful accounts

Doubtful accounts expense
Recovered accounts written off
Less: Written off
Allowance for doubtful accounts
 5,900,000.00
3,024,000.00

2,100,000.00
50,000.00
250,000.00

20,000.00
80,000.00

950,000.00
100,000.00

5,900,000.00
2,100,000.00
3,800,000.00
3,024,000.00
126,000.00
650,000.00
950,000.00
1,600,000.00
50,000.00
250,000.00
1,300,000.00

3,150,000.00
126,000.00

100,000.00
70,000.00
80,000.00
250,000.00
 50,000.00
200,000.00
1
2
3

3
German Company started business at the beginning of current year. The
entity establishe an allowance for doubtful accounts estimated at 5% of credit
sales. During the year, the entity wrote off Php 50,000 of uncollectible
accounts.

Further analysis showed that merchandise purchased amounted to Php 9,000,000

and ending merchandise inventory was Php 1,500,000. Goods were sold at 40%
above cost.

The total sales comprised 80% sales on account and 20% cash sales. Total
collections from customers, excluding cash sales, amounted to Php 6,000,000

What amount should be reported as cost of goods sold?

What amount should be reported as sales on account?
What is the net realizabe value of accounts receivable at year- end?

Purchases
Less: Inventory, Ending
Cost of Goods Sold

Cost of Goods Sold

Sales
Credit Sales

Credit Sales
Less: collections from customers
allowance for doubtful accounts
written off
Net realizable value
 9,000,000.00
1,500,000.00
7,500,000.00

7,500,000.00
10,500,000.00
8,400,000.00

8,400,000.00
6,000,000.00
420,000.00
50,000.00
1,930,000.00
Mill Company's allowance for doubtful accounts was Php 1,000,000 at the end of 2022
and Php 900,000 at the end of 2021.

For the year ended December 31, 2022, the entity reported doubtful accounts
expense of Php 160,000 in the income statement.

What amount was debited to the appropriate account to writeoff uncollectible

accounts in 2022?

Allowance for doubtfull accounts, Beg

Doubtfull accounts expense
Total
Allowance for doubtfull accounts, End
Written off
 900,000.00
160,000.00
1,060,000.00
1,000,000.00
60,000.00
1
2
3

3
Delta Company sold goods to wholesalers on terms 2/15, net 30. The entity
had no cash sales but 50% of the customers took advantage of the discounts.

The entity used the gross method of recording sales and accounts receivable.

An analysis of the trade accounts receivable at year- end revealed the following:

Age Amount
0- 15 days 2,000,000.00
16- 30 days 1,400,000.00
31- 60 days 400,000.00
Over 60 days 200,000.00

What amount should be reported as allowance for sales discount at year- end?
What amount should be reported as allowance for doubtful accounts at year- end?
What is the net realizable value of accounts receivable at year- end?

Sales 2,000,000.00
Sales Discount 40,000.00
Allowance for sales discount 20,000.00

16- 30 days 1,400,000.00

31- 60 days 400,000.00
Over 60 days 200,000.00

Account Receivable 4,000,000.00

less: Allowance for Sales Discount 20,000.00
Allowances for doubtful accounts 210,000.00
3,770,000.00
 Collectible
100%
95%
90%
50%

Uncollectible
70,000.00
40,000.00
100,000.00
210,000.00
Effective with the current year, Hall Company adoped a new accounting method
for estimating the allowance for doubtful accounts at the amount indicated by the year-
end aging of accounts receivable.

Allowance for doubtful accounts, January 1

Provision for doubtful accounts during the current year at 2% of credit sales
of Php 10,000,000
Accounts written off
Estimated uncollectible accounts per aging on December 31

What amount should be reported as doubtful accounts expense for current year?

ADA, Beg
Doubtful Accounts Expense
Total
Write off
ADA, End
250,000.00

200,000.00
205,000.00
220,000.00

250,000.00
175,000.00
425,000.00
205,000.00
220,000.00
1
2
3
From inception of operations, Axis Company carried no allowance for doubtful
accounts.

Uncollectible accounts were expensed as written off and recoveries were credited
to income as collected.

During 2022, management recognized that the accounting policy with respect to doubtful
accounts was not correct and determned that an allowance for doubtful accounts was
necessary.

A policy was established to maintain an allowance for doubtful accounts based on

historical bad debt loss percentage applied to year- end accounts receivable.

The historical bad debt loss percentage is to be recomputed each year based on all
available past years up to a maximum of five years.

Year Credit Sales

2018 1,500,000.00
2019 2,250,000.00
2020 2,950,000.00
2021 3,300,000.00
2022 4,000,000.00

Balances of accounts receivable

December 31, 2021 1,250,000.00

December 31, 2022 2,000,000.00

What is the allowance for doubtful accouns on December 31, 2021? 20,000.00
What is the allowance for doubtful accouns on December 31, 2022? 34,000.00
What amount should be reported as doubtful accounts expense for 2022? 92,000.00
Writeoffs Recoveries

15,000.00 -
38,000.00 2,700.00
52,000.00 2,500.00
65,000.00 4,800.00
83,000.00 5,000.00