6. As of the end of the year, Beta Corporation has an accounts receivable balance of P2,000,000. You are tasked to do the cut-off procedures. Sales invoices 2002 and 2003 are for analysis. (A) SI 2002 has an amount of P30,000 which was included in the balance. It is sold under the shipping terms FOB shipping point, freight prepaid. Freight amount which was excluded from the AR balance costed P2,000. (B) SI 2003 amount is P40,000. The inventories were sold FOB destination, freight prepaid. Both this amount and the freight costing P1,800 were excluded from the balance. The items reached the customer as of year-end. Beta estimates that P70,000 of the merchandise sold will be returned and that P1,200,000 of the gross receivables will be settled within the credit term that grants a 3% cash discount. How much should Beta Corporation report as the net realizable value of the accounts receivables 7. Theta Corporation has the following balances regarding its current year of operations (see image). If Theta determined that 1.2% of credit sales is estimated to be worthless, how much should Theta Corporation report as allowance for bad debts Account Title Amount in Pesos Accounts Receivable, beginning 1,450,000 Allowance for bad debts, beginning 50,000 Credit sales 6,600,000 Collection of credit sales 6,470,000 Write-off of worthless accounts 45,000 Recovery of previously written-off 15,000 accounts, excluded from collections mentioned above 8. Chi Corporation has the following amounts of receivables grouped according to their age (see image). The corporation determined that P40,000 in the "more than 91 days" group are worthless. Chi determined that these four groups of accounts receivables have COLLECTIBLE percentages of 100%, 99%, 90%, and 70% respectively. If the unadjusted balance of the allowance for doubtful account has a credit balance of P10,000, how much should Chi report as bad debt expense? Age Amount in pesos Not yet due 800,000 Past 1 to 30 days 400,000 Past 31 to 90 days 250,000 More than 91 days 100,000 6. As of the end of the year, Beta Corporation has an accounts receivable balance of P2,000,000. You are tasked to do the cut-off procedures. Sales invoices 2002 and 2003 are for analysis. (A) SI 2002 has an amount of P30,000 which was included in the balance. It is sold under the shipping terms FOB shipping point, freight prepaid. Freight amount which was excluded from the AR balance costed P2,000. (B) SI 2003 amount is P40,000. The inventories were sold FOB destination, freight prepaid. Both this amount and the freight costing P1,800 were excluded from the balance. The items reached the customer as of year-end. Beta estimates that P70,000 of the merchandise sold will be returned and that P1,200,000 of the gross receivables will be settled within the credit term that grants a 3% cash discount. How much should Beta Corporation report as the net realizable value of the accounts receivables 7. Theta Corporation has the following balances regarding its current year of operations (see image). If Theta determined that 1.2% of credit sales is estimated to be worthless, how much should Theta Corporation report as allowance for bad debts Account Title Amount in Pesos Accounts Receivable, beginning 1,450,000 Allowance for bad debts, beginning 50,000 Credit sales 6,600,000 Collection of credit sales 6,470,000 Write-off of worthless accounts 45,000 Recovery of previously written-off 15,000 accounts, excluded from collections mentioned above 8. Chi Corporation has the following amounts of receivables grouped according to their age (see image). The corporation determined that P40,000 in the "more than 91 days" group are worthless. Chi determined that these four groups of accounts receivables have COLLECTIBLE percentages of 100%, 99%, 90%, and 70% respectively. If the unadjusted balance of the allowance for doubtful account has a credit balance of P10,000, how much should Chi report as bad debt expense? Age Amount in pesos Not yet due 800,000 Past 1 to 30 days 400,000 Past 31 to 90 days 250,000 More than 91 days 100,000