select the best answer

Question 17

EMILIA, Inc had net sales in 2020 of P1,000,000. At December 31, 2020, before adjusting entries, the balances in selected accounts were: accounts receivable P270,000 debit, and allowance for doubtful accounts P2,700 debit. EMILIA estimates that 3.5% of its net sales will prove to be uncollectible. What is the net realizable value of the receivables reported on the statement of financial position at December 31, 2020?

Group of answer choices

a.235,000

b.243,100

c.237,700

d.232,300

Question 18

On July 1, 2020, Casio Company sold equipment to Sharp Company for 250,000. Casio accepted a 10% note receivable for the entire sales price. This note is payable in two equal installments of 125,000 plus accrued interest on December 31, 2020 and December 31, 2021. On July 1, 2021, Casio discounted the note at a universal bank at an interest rate of 12%. How much was Casio's proceeds from the discounted note?

Group of answer choices

a.251,500

b.275,000

c.some other answer

d.264,000

Question 19

UNCLE ROGER Corp. has outstanding accounts receivable totaling P3 million as of December 31 and sales on credit during the year of P15 million. There is also a debit balance of P12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

Group of answer choices

a.228,000

b.228,000

c.240,000

d.1,200,000

Question 20

KAISEN Co. prepared an aging of its accounts receivable at December 31, 2020 and determined that the net realizable value of the receivables was 29,000,000. Additional information is available as follows:

Allowance for uncollectible accounts at 1/1/20credit balance3,000,000Accounts written off as uncollectible during 2020250,000Accounts receivable at 12/31/2032,500,000Uncollectible accounts recovered during 2020500,000

For the year ended December 31, 2020, KAISEN's doubtful accounts expense would be

Group of answer choices

a.300,000

b.750,000

c.500,000

d250,000

Question 21

FAIZER Corporation does business throughout Asia. The company builds and sells equipment used in manufacturing pharmaceuticals. On December 31, 2020, FAIZER's individually significant accounts receivable are as follows: JSK Company- 80,000; PALL Inc.- 200,000; RAFA Co.- 120,000; DJOKOVIC Co.-100,000; other receivables- 500,000. FAIZER Corporation determines that JSK Company's receivable is impaired by P40,000 and DJOKOVIC Co.'s receivable is totally impaired. The other receivables from RAFA and PALL are not considered impaired. However, FAIZER determines that a composite rate of 2% is appropriate to measure impairment on all other receivables including on RAFA and PALL. What is the total impairment of receivables for FAIZER Corporation for 2020?

Group of answer choices

a.140,000

b.156,400

c.150,000

d.123,600

Question 22

On December 31, 2020, RENT Co. received two 50,000 notes receivable from customers A and B in exchange for services rendered. On both notes, interest is computed on the outstanding principal balance at annual rate of 3% and payable at maturity. The note fromCustomer A was made under customary trade terms and is due in 9 months. The note from Customer B is due in 5 years. The market interest rate for similar notes on December 31, 2020 was 8%. Kindly use PV factors rounded off to3 decimal places.At what amounts should these two notes receivable be reported in RENT's December 31, 2020 statement of financial position?

Group of answer choices

a.A-47,200; B-34,050

b.A-50,000; B-39,158

c.some other answer

d.A-48,260; B-34,050

e.A-47,200; B-39,158

Question 23

WORLD Company discounted a one year noninterest bearing note receivable amounting to 5,000,000 on November 1, 2020, with recourse. This note will mature on January 31, 2021. WORLD accounted the discounting of note receivable as conditional sale with a recognition of contingent liability. What amount of contingent liability shall be disclosed in the financial statements for the year ended December 31, 2020?

Group of answer choices

a.4,000,000

b.3,600,000

c.4,400,000

d.some other answer

e.5,000,000