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a debts on January 1, 20x1. . Adjusted balance of the allowance account on Dec. 31, 20x1. 1. Adjusted bad debts expense for the year. . Recoverable historical cost of accounts receivable on Dec. 31, . Provide the necessary year-end adjusting entry(ies). PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL 1. On Dec. 31, 20x1, Entity A sells goods with a list price of P300,000 and terms of "20% trade discount, 5/10, n/30." EntityWS A applies PFRS 15 and estimates that only 80% of the cash 4,200,006 discount will be taken. How much net revenue is recognized 651,006 on Dec. 31, 20x1? a. 240,000 b. 230,400 c. 228,000 d. 182,400 2. Tank Co. sold goods with a list price of P100,000 on a credit ning bad term of 10%, 3/10, 1/15, n30. Based on Tank's past experience, ceivables all customers take the highest available cash discount. Under dule on the net method, how much receivable is recognized at the point of sale? a. 87,300 b. 86,427 c. 92,048 d. 90,824 ectible 3. On December 29, 20x1, Fender Co. sold goods with selling price of P250,000, on account. Fender Co. shipped the goods on that date and paid shipping costs of P20,000. The terms of the sale are FOB shipping point, freight prepaid. The buyer received the goods, and settled the account, on Jan. 17, 20x2. P18,901 How much cash was received from the buyer? a. 250,000 b. 270,000 c. 230,000 d. 210,000 counts 20 days 4. Wayen, Inc. sells to wholesalers on terms of 2/15, net 30. ccount Wayen has no cash sales but 50% of Wayen's customers take rthless advantage of the discount. Wayen uses the gross method of recording sales and trade receivables. An analysis of Wayen's trade receivables at December 31, 20x1 revealed the following: Age Amount Collectible 0 - 15 days 100,000 100% 16 - 30 days 60,000 95% 31 - 60 days 5,000 90% Over 60 days 2,500 P500 167,500 In its December 31, 20x1 balance sheet, what amount should Wayen report for allowance for discounts? a. 1,000 b. 1,620 c. 1,675 d. 2,000 (AICPA)Pter A AcCon 200 5. The following information pertains to Christine Corp.: the aging method accounts should R Credit sales for the year ended Dec. 31, 20x1 450,000 Credit balance in allowance for bad debts - Jan. 1, 20x1 10,800 a. 9,000 Bad debts written off during 20x1 18,000 (AICPA) g. Radio Co. ha According to past experience, 3% of Christine 's credit sales have for doubtful been uncollectible. After provision is made for bad debt expense period. Duri for the year ended December 31, 20x1, the allowance for P1,000,000 (4 uncollectible accounts balance would be b. 13,500 c. 24,300 (excluding a. 6,300 d. 31,500 P2,000 accou (AICPA) 6. The following accounts were abstracted from Claudette Co.'s How much is t unadjusted trial balance at December 31, 20x1: end of the perio Debit Credit a. 279,000 Accounts receivable 1,000,000 Allowance for uncollectible accounts 8,000 9. Light Co.'s Net credit sales 3,000,000 end of the Write-offs Claudette estimates that 3% of the gross accounts receivable will P10,000 a become uncollectible. After adjustment at December 31, 20x1, the account d allowance for uncollectible accounts should have a credit balance of recoveries a. 90,000 b. 82,000 c. 38,000 period? (AICPA) d. 30,000 a. 150,00 7. The following information pertains to Rosa Co.'s accounts 10. In its De receivable at December 31, 20x1: accounts Days Estimated outstanding Amount % uncollectible uncollect 0-60 120,000 1% risk of 61 -120 90,000 receivab Over 120 2% 100,000 6% risk? (It a. 0;0 During 20x1, Rosa wrote off P7,000 in receivables and recovered (AICPA) P4,000 that had been written off in prior years. Rosa's December 31, 20x1, allowance for uncollectible accounts was P22,000. UnderChapter Corp.: Accounts Receivable 201 10x1 450,000 10,800 the aging method, what amount of allowance for uncollectible accounts should Rosa report at December 31, 20x1? 18,000 a. 9,000 b. 10,000 c. 13,000 d. 19,000 dit sales have (AICPA) debt expense 8. Radio Co. had accounts receivable of P150,000 and allowance llowance for for doubtful accounts of P12,000 at the beginning of the period. During the period, Radio Co. made total sales of d. 31,500 P1,000,000 (40% were cash sales), collected P410,000 accounts (excluding recoveries), wrote-off P9,000 accounts, recovered P2,000 accounts, and recognized bad debts expense of P15,000. laudette Co.s How much is the carrying amount of accounts receivable at the Credit end of the period? a. 279,000 b. 331,000 c. 311,000 d. 351,000 8,000 3,000,000 9. Light Co.'s accounts receivable balances at the beginning and end of the period were P80,000 and P100,000, respectively. Write-offs and recoveries during the period amounted to ceivable will P10,000 and P8,000, respectively. Collections of sales on 31, 20x1, the account during the period totaled P120,000, excluding the redit balance recoveries. How much is the total credit sales during the period? d. 30,000 a. 150,000 b. 170,000 c. 190,000 d. 120,000 10. In its December 31 balance sheet, Devin Co. reported trade .'s accounts accounts receivable of P250,000 and related allowance for uncollectible accounts of P20,000. What is the total amount of ncollectible risk of accounting loss related to Devin's trade accounts 1% receivable, and what amount of that risk is off balance-sheet 2% risk? (Item 1) Risk of accounting loss; (Item 2) Off-balance-sheet risk 6% a. 0;0 b. 230,000; 0 c. 230,000; 20,000 d. 250,000; 20,000 (AICPA) covered
