Problem 19

When examining the accounts of Ayala Corporation, it is ascertained that balance relating

to both receivables and payables are included in a single controlling account called

"Receivables control" that has a debit balance of P4,850,000. An analysis of the make-up

of this account revealed the following:

Debit Credit

Accounts receivable - customers 7,800,000

Accounts receivable - officers 500,000

Debit balances - creditors 300,000

Postdated checks from customers 400,000

Subscriptions receivable 800,000

Accounts payable for merchandise 4,500,000

Credit balances in customer's accounts 200,000

Cash received in advance from customers 100,000

Expected bad debts 150,000

After further analysis of the aged accounts receivable, it is determined that the allowance

for doubtful accounts be P200,000. What is the correct total of current net

receivables?__________.

Problem 20

On December 31, 2020, the accounts receivable control account of Eddie Company had a

balance of P8,200,000. An analysis of the accounts receivable account showed the

following:

Subscription receivable due in 30 days 2,200,000

Advance payments to creditors on purchase orders 400,000

Advances to affiliated companies 1,000,000

Interest receivable on bonds 400,000

Trade accounts receivable - unassigned 2,000,000

Customers' accounts reporting credit balances arising from sales returns ( 600,000)

Trade accounts receivable - assigned (Finance Company's equity in

assigned accounts is P500,000) 1,500,000

Trade installments receivable due 1-18 months, including unearned

finance charge of P50,000 850,000

Trade accounts receivable from officers, due currently 150,000

Trade accounts on which post-dated checks are held (no entries were

made on receipt of checks) 200,000

Accounts known to be worthless 100,000

Total 8,200,000

The correct balance of trade accounts receivable on December 31, 2020 is_________.

Exercise 13 (Adapted)

Indicate how the percentage-of-receivables method, based on an aging schedule, accomplishes

the objectives of the allowance method of accounting for bad debts. What other methods,

besides an aging analysis, can be used for estimating uncollectible accounts?