Question
IMPORTANT: Always put comma to separate figures. Wrong spelling wrong. Unnecessary spaces will be marked as incorrect (e.g. There are two spaces between the words
IMPORTANT:
- Always put comma to separate figures.
- Wrong spelling wrong.
- Unnecessary spaces will be marked as incorrect (e.g. There are two spaces between the words accounts and receivables: Accounts Receivable)
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
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Question 1-A
On July 1, 2020, Bookshelf Co. sold goods in exchange for a P200,000 8-month noninterest-bearing note receivable. At the time of the sale, the note's market rate of interest was 12%.
What amount did Lee receive when it discounted the note at 10% on September 1, 2020?
Question 1-B
On December 31, 2020 the accounts receivable control account of Ever Co. had a balance of P191,000. An analysis of the accounts receivable account showed the following:
Accounts known to be worthless | P 2,500 |
Advance payments to creditors on purchase orders | 10,000 |
Advances to affiliated companies | 25,000 |
Customers accounts reporting credit balance arising from sales return | (15,000) |
Interest receivable on bonds | 10,000 |
Other trade accounts receivable unassigned | 50,000 |
Subscriptions receivable for common stock due in 30 days | 55,000 |
Trade accounts receivable assigned (Finance companys equity in assigned accounts is P10,000) | 25,000 |
Trade installment receivable due 1 18 months, (including unearned finance charges, P2,000) | 22,000 |
Trade receivables from officers, due currently | 1,500 |
Trade accounts on which post-dated checks are held (no entries were made on receipts of checks) | 5,000 |
Total | P 191,000 |
What is the correct balance of trade accounts receivable of Ever Co. on December 31, 2020?
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