At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the yearended 30 September 2021 the company wrote off accounts totaling P18,000 and recoveredP5,000 of accounts written off, and at the end of the year, it is decided that the doubtful accountexpense should be P20,000.56) How much is the balance of allowance for doubtful accounts on September 30,2021?a. 44,000b. 30,000During the year, Jantz Company made an entry to write off a P4,000 uncollectible account.Before this entry was made, the balance in accounts receivable was P80,000 and the balance inC. 62,000d. None of thesethe allowance account was P4,500.57)The net realizable value of accounts receivable after the write-off entry wasa. P80,000.b. P79,500.Use the following information for the next two questions:A trial balance before adjustments included the following:c. P71,500.d. P75,500.DebitCreditSalesP425,000Sales returns and allowanceP14,00053,000Accounts receivableAllowance for doubtful accounts76058)If the estimate of uncollectible is made by taking 1% of net sales, how much is the bad debtexpense?a. P3,350.b. P4,110.59)If the estimate of uncollectible is made by taking 10% of gross account receivables, howmucha. P4,540.b. P5,300.Fact pattern for the next three independent questions:ABC Company received note from sale of equipment on January 1, 2018 with the followinginformation:с. Р4,250.d. P4,870.isthe bad debt expense?c. P5,224.d. P6,060.Face amountP800,000Effective interest60)The noteinitial14%is due in lump sum in five years' time. What is the present value of the note atrecognition (January 1, 2018)?c. 567,823d. 591,834a. 415,495b. 432,15861)The note is due in four equal annual installments. The first installment is due on December31, 2018. What is the present value of the note at initial recognition (January 1, 2018)?a. 582,742b. 567,82362)The note is due in five equal annual installments. The first installment is due immediately onJanuary 1, 2018. What is the present value of the note at initial recognition (January 1, 2018)beforea. 582,742b. 567,823C. 591,834d. 602,158any collection?c. 602,158d. 626,194On January 1, 2021, ABC Co. sold transportation equipment with a historical cost of P12,000,000 andaccumulated depreciation of P7,000,000 in exchange for a noninterest-bearing note receivable ofP4,000,000 due in 4 equal annual installments starting on December 31, 2021 and every Decemberthereafter. The prevailing rate of interest for this type of note is 12%.63)How much is the present value of note on January 1,2021?а. 3,037,349b. 2,542,07264) How much is the interest income in 2021?a. 805,924b. 305,047c. 3,401,831d. 7,049,367c. 396,882d. 288,22065)How much is the carrying amount of the receivable on December 31, 2021?a. 1,690,510b. 2,401,83066) How much is the current portion of notes receivable on December 31, 2021?а. 154,076b. 635,51867)How much is the current portion of notes receivable on December 31, 2021?a. 2,401,831b. 1,847,121c. 2,690,051d. 2,847,120c. 694, 951d. 591,780c. 2,810,051d. 6,895,291

The numerical has covered the concept of Accounts Receivable. An allowance for doubtful debt…

At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the year ended 30 September 2021 the company wrote off accounts totaling P18,000 and recovered P5,000 of accounts written off, and at the end of the year, it is decided that the doubtful account expense should be P20,000. 56) How much is the balance of allowance for doubtful accounts on September 30,2021? a. 44,000 b. 30,000 During the year, Jantz Company made an entry to write off a P4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was P80,000 and the balance in the allowance account was P4,500. c. 62,000 d. None of these

At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the year ended 30 September 2021 the company wrote off accounts totaling P18,000 and recovered P5,000 of accounts written off, and at the end of the year, it is decided that the doubtful account expense should be P20,000. 56) How much is the balance of allowance for doubtful accounts on September 30,2021? a. 44,000 b. 30,000 During the year, Jantz Company made an entry to write off a P4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was P80,000 and the balance in the allowance account was P4,500. c. 62,000 d. None of these

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 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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