1. Brotherhood Company had the following information

relating to its accounts receivable:

Accounts receivable, 12/31/21 1,300,000

Credit sales for 2022 5,400,000

Collections from customers for 2022,

excluding recovery

4,750,000

Accounts written off 9/30/22 125,000

Collection of accounts written off in

prior year (customer credit was not

reestablished)

25,000

Estimated uncollectible receivable per

aging of receivable at 12/31/22

165,000

On December 31, 2022, the amortized cost of accounts

receivable is

a. 1,825,000 c. 1,635,000

b. 1,800,000 d. 1,660,000

2. Based on its past collection experience, JSC Company

provides for bad debt at the rate of 2 percent of net credit

sales. On January 1, 2021, the allowance for doubtful

accounts credit balance was P10,000.

During 2021, JSC wrote off P18,000 of uncollectible

receivables and recovered P5,000 on accounts written

off in prior years. If net credit sales for 2021 totaled

P1,000,000, the doubtful accounts expense for 2021

should be

a. 17,000 c. 23,000

b. 20,000 d. 35,000

3. Scout Company estimates the allowance for uncollectible

accounts at 3% of the ending balance of accounts

receivable. During 2020, Scout's credit sales and

collections were P125,000 and P131,000, respectively.

What was the balance of accounts receivable on January

1, 2020, if P180 in accounts receivable were written off

during 2020 and if the allowance account had a balance

of P750 on December 31, 2020?

a. 5,820 c. 31,180

b. 31,000 d. 25,000

4. Noreen Company provided the following information for

2020:

Accounts receivable - January 1 2,000,000

Credit sales 10,000,000

Collection from customers, excluding

the recovery of accounts written off

8,000,000

Accounts written off 100,000

Sales returns 500,000

Recovery of accounts written off 50,000

Estimated future sales returns on

December 31

150,000

Estimated uncollectible accounts on

December 31 per aging

300,000

What is the "amortized cost" of accounts receivable on

December 31, 2020?

a. 3,400,000 c. 2,950,000

b. 3,100,000 d. 2,900,000

5. Maps Inc. prepared an aging of its accounts receivable

at December 31, 2020 and determined that the

amortized carrying amount of the receivables was

P250,000. Additional information is available as

follows:

Allowance for bad debts at 1/1/2020 -

credit balance

28,000

Accounts written off as uncollectible

during 2020

23,000

Accounts receivable at 12/31/2020 270,000

Uncollectible accounts recovered during

2020

5,000

For the year ended December 31, 2020, Maps' bad debts

expense would be

a. 10,000 c. 20,000

b. 15,000 d. 23,000

6. Which of the following should be recorded in Accounts

Receivable?

a. Receivables from officers

b. Receivables from subsidiaries

c. Dividends receivable

d. None of these

7. Receivables from subsidiaries and affiliates, if significant

should be classified as

a. Current assets

b. Noncurrent assets

c. Either as noncurrent or current depending on the

expectation of realizing them within one year or over

one year

d. Intangible assets

8. Receivables from officers, directors and employees for

goods sold or services rendered in the ordinary course of

business

a. Are considered current if proper control is exercised

in granting credit and the accounts are currently

collectible

b. Are not included in trade accounts receivable

c. Are included in current assets even if the receivables

are actually loans and advances and the collection is

unlikely within a year

d. Are always classified as noncurrent

9. Credit balances in accounts receivable should be classified

as

a. Current liability

b. Part of accounts payable

c. Noncurrent liability

d. Deduction from accounts receivable

10. Which of the following concepts relates to using the

allowance method in accounting for accounts receivable?

a. Bad debt expense is an estimate that is based on

historical and prospective information.

b. Bad debt expense is based on the actual amounts

determined to be uncollectible.

c. Bad debt expense is an estimate that is based only on

an analysis of the receivables aging.

d. Bad debt expense is management's determination of

which accounts will be sent to the attorney for

collection.