Problem 12

Rosalie Co. uses the gross method to record sales made on credit. On June 10, 2020, it

made sales of P100,000 with terms 2/10, n/30 to Finley Farms, Inc. On June 19, 2020,

Rosalie received payment for 1/2 the amount due from Finley Farms. Rosalie's fiscal year

end is on June 30, 2020. What amount will be reported in the statement of financial position

for the accounts receivable due from Finley farms, Inc.? _________

Problem 13

On the December 31, 2020 balance sheet of Mann Co., the current receivables consisted of

the following:

Trade accounts receivable 93,000

Allowance for uncollectible accounts (2,000)

Claim against shipper for goods lost in transit (November 2020) 3,000

Selling price of unsold goods sent by Mann on consignment at

130% of cost (not included in Mann's ending inventory) 26,000

Security deposit on lease of warehouse used for storing some inventories 30,000

Total 150,000

On December 31, 2020, the correct total of Mann's current net receivables was _________.

Problem 14

The following information relates to Jay Co.'s accounts receivable for 2020:

Accounts receivable, 1/1/20 650,000

Credit sales for 2020 2,700,000

Sales returns for 2020 75,000

Accounts written off during 2020 40,000

Collections from customers during 2020 2,150,000

Estimated future sales returns at 12/31/20 50,000

Estimated uncollectible accounts at 12/31/20 110,000

What amount should Jay report for accounts receivable, before allowances for sales returns

and uncollectible accounts, at December 31, 2020? __________

Problem 15

Inge Co. determined that the net value of its accounts receivable at December 31, 2020,

based on an aging of the receivables, was P325,000. Additional information is as follows:

Allowance for uncollectible accounts1/1/20 30,000

Uncollectible accounts written off during 2020 18,000

Uncollectible accounts recovered during 2020 2,000

Accounts receivable at 12/31/20 350,000

For 2020, what would be Inge's uncollectible accounts expense? __________

Problem 16

Delta, Inc. sells to wholesalers on terms of 2/15, net 30. Delta has no cash sales but 50% of

Delta's customers take advantage of the discount. Delta uses the gross method of recording

sales and trade receivables. An analysis of Delta's trade receivables balances at December

31, 2020, 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, 2020 balance sheet, what amount should Delta report of allowance for

discounts? __________

Problem 17

At January 1, 2020, Jamin Co. had a credit balance of P260,000 in its allowance for

uncollectible accounts. Based on past experience, 2% of Jamin's credit sales have been

uncollectible. During 2020 Jamin wrote off P325,000 of uncollectible accounts. Credit

sales for 2020 were P9,000,000. In its December 31, 2020 balance sheet, what amount

should Jamin report as allowance for uncollectible accounts? __________

Problem 18

The following accounts were abstracted from Roxy Co.'s unadjusted trial balance at

December 31, 2020:

Accounts receivable 1,000,000

Allowance for uncollectible accounts 8,000

Net credit sales 3,000,000

Roxy estimates that 3% of the gross accounts receivable will become uncollectible. After

adjustment at December 31, 2020, the allowance for uncollectible accounts should have a

credit balance of __________.