Exercise 5Analyzing Receivables. The June 30, 20X5 statement of financial position ofthe U-turn Company included the following information:P 59,800(38,000)Notes receivableLess: Notes receivable discountedP 21,800Accounts receivableLess: Allowance for doubtful accountsTotal receivablesP224,000(14,100)209,900P231,700During the company's fiscal year ending June 30, 20X5, the followingtransactions occurred:1. Sales on accounts2. Collections on accounts3. Accounts receivable written off as uncollectible4. Notes receivable collected5. Customer notes received in payment of accountsreceivableP881,200841,00013,80029,00074,00036,0006. Notes receivable discounted paid at maturity7. Notes receivable discounted defaulted, including interestof P20 and a P5 fee. This amount is expected to becollected during the 2006 fiscal year2,025134 Chapter 58. Proceeds from customer notes discounted (face valueP45,000, accrued interest revenue P200)9. Collections on accounts previously written off10. Sales returns and allowances (on credit sales)11. Bad debts were estimated to be 1.5% of credit sales45,0755002,000Required:1. Prepare journal entries necessary for U-turn to record the precedingtransactions.2. Prepare an analysis that shows the amount of the notes receivable, notesreceivable discounted, accounts receivable, and allowance for doubtfulaccounts balance that will be disclosed on U-turn's June 30, 20X6statement of financial position.

Journal entry shows the recording of transaction. Accounts receivables are generated from sales on…

Analyzing Receivables. The June 30, 20X3 statement of financial positioh 8f the U-turn Company included the following information: Notes receivable Less: Notes receivable discounted P 59,800 (38,000) P 21,800 P224,000 Accounts receivable Less: Allowance for doubtful accounts Total receivables 209,900 P231,700 (14,100) During the company's fiscal year ending June 30, 20X5, the following transactions occurred: 1. Sales on accounts 2. Collections on accounts P881,200 841,000 13 800

Analyzing Receivables. The June 30, 20X3 statement of financial positioh 8f the U-turn Company included the following information: Notes receivable Less: Notes receivable discounted P 59,800 (38,000) P 21,800 P224,000 Accounts receivable Less: Allowance for doubtful accounts Total receivables 209,900 P231,700 (14,100) During the company's fiscal year ending June 30, 20X5, the following transactions occurred: 1. Sales on accounts 2. Collections on accounts P881,200 841,000 13 800

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...

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Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?
Entries for notes receivable The series of five transactions recorded in the following T accounts were related to a sale to a customer on account and the receipt of the amount owed. Briefly describe each transaction. Cash Notes Receivable (e) 76,500 (c) 75,000 (d) 75,000 Accounts Receivable Cost of Goods Sold (a) 75,000 (c) 75,000 (b) 45,000 (d) 75,400 (b) 75,400 Inventory Interest Revenue (b) 45,000 (d) 400 (e) 1,100 Sales (a) 75,000
Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of $134,000. Conner uses the balance sheet method to report bad debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance sheet method? A. $26,082 B. $6,164 C. $260,820 D. $61,640
Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.