CHART OF ACCOUNTS:

• Cash
• Accounts Receivable
• Accounts Receivable (Credit)
• Due from Factor
• Subscription Receivable
• Refundable Contract Deposit
• Claims Receivable
• Advances to Employees
• Advances to Affiliates
• Notes Receivable Discounted
• Unearned Sales Revenue
• Sales Revenue
• Unearned Interest Income
• Interest Income
• Loss on Discounting of Notes Receivable
• Loss on Factoring
• Allowance for Doubtful Accounts
• Allowance for Sales Allowances
• Allowance for Sales Discount
• Allowance for Sales Returns
• 1. Identifying Accounts Receivable Transactions 15 POINTS
• Identify if the following transactions will give rise to debit or credit to Accounts Receivable account or not. Write the word YES if it will use the Accounts Receivable account during recording in accounting books, and the word NO if not. Identify what receivable account* is appropriate to record the transaction. Write "none" if not applicable.

No.	TRANSACTIONS	YES/NO	Appropriate Account
1.	Charge sales
2.	Collection from customers
3.	Charge for goods out on consignment.
4.	Shareholders subscription
5.	Advance collection from customers for future shipment of goods.
6.	Deposit on contract
7.	Claims against common carrier for shipping damages
8.	IOUs from employees
9.	Cash advances to affiliates
10.	Write-off of accounts receivable
11.	Provision for doubtful accounts
12.	Debit memorandum for damaged goods
13.	Allowance to customers for shipping damages
14.	Allowance to customers for payment within the discount period
15.	Allowance to customers for return of goods sold

2. Nook Company uses the allowance method of accounting for bad debts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31 of the current year.

No. of Days Outstanding	Amount	Probability of Collection
0-31 days	P 500,000	0.98
31-60 days	200,000	0.90
Over 60 days	100,000	0.80

The following additional information is available for the current year:

Net credit sales for the year, P4,000,000

Allowance for bad debts, January 1, P45,000 (cr.)

Allowance for bad debts, December 31, P2,000 (cr.)

If Nook bases its estimate of bad debts on the aging of accounts receivable, what is the Bad Debt Expense for the current year ending December 31?

3. On January 1, Panther Corporation received one-year 12% note receivable with a face value of P100,000 from one of its customers. On October 1, Panther Corporation discounted the note to Peaceful Bank to meet some of its maturing obligations. The banks rate in discounting the note is 14%.

How much is the proceeds from discounting of notes receivable?

4. Wednesday Company received from a customer a one-year, P 500,000 note bearing annual interest of 8%. Five months prior to maturity, Wednesday discounted the note at IABF Bank at 10%.

Give the entry for the discounting, assuming the note was discounted with recourse and is accounted as a conditional sale.

Round off to the nearest whole number.

5. Lorie Anne Company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1, 2020, Lorie Anne factored P 2,000,000 of its accounts receivable to Buco Finance Company. Bucos factoring fee was 15% of the receivable purchased. Buco withheld 5% of the purchase price as protection against sales returns and allowances.

What was the net cash received by Lorie Anne from these factored accounts?

6. Real Company sold P300,000 of its accounts receivables without recourse to a factoring agency. The purchaser assessed a finance charge of 5%. It also retained 5% to cover adjustments (sales returns, discounts, etc.).

What is the journal entry that would be recorded by Real Company on the date of factoring?

7. Blink Co. has the following account balances in its books:

Subscription receivable collectible after 1 year	50,000
Advances to affiliates	100,000
Receivable from petty cash custodian	500
Accrued interest	915
Claim for rebates	5,000
Claims from insurance	12,000
Claim for tax refunds	5,000

How much is the current asset?

8. On January 1, 2020, AINT NO VALLEY LOW ENOUGH Company sold computers costing 700,000 with accumulated depreciation of 70,000 in exchange for a 650,000 note receivable payable in four installments as follows: 400,000 1^st year; 50,000 2^nd year; 20,000 3^rd year; and 180,000 4^th year. A 7% interest is also payable yearly. The effective rate is 5%.

How much is the discount on notes receivable on January 1, 2020?

Please answer correctly, it's part of our quizzes po hehe, especially the question 1 I'm having confusion with the instructions thank you