owed Problem 5-3 (IAA) At the beginning of current year, Jocose Company reported the following: D00 2,00,000 100,000 000 Accounts receivable Allowance for doubtful accounts the Additional information for the current year: 1. Cash sales of the entity amount to P800,000 and represent 10% of gross sales. 2. Ninety percent of the credit sales customers do not take advantage of the 5/10, n /30 terms. 3. Customers who did not take advantage of the discount paid P5,940,000. 4. It is expected that cash discounts of Pl10,000 will be taken on accounts receivable outstanding at December 31, 2019. 5. Sales returns amounted to P80,000. All returns were from charge sales. 6. During the year accounts totaling P60,000 were written off as uncollectible. Recoveries during the year amounted to P10,000. This amount is not included in the collections. 7. The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the outstanding accounts receivable at year-end. Required: a. Prepare journal entries to record the transactions. b. What is the net realizable value of accounts receivable at year-end?

owed Problem 5-3 (IAA) At the beginning of current year, Jocose Company reported the following: D00 2,00,000 100,000 000 Accounts receivable Allowance for doubtful accounts the Additional information for the current year: 1. Cash sales of the entity amount to P800,000 and represent 10% of gross sales. 2. Ninety percent of the credit sales customers do not take advantage of the 5/10, n /30 terms. 3. Customers who did not take advantage of the discount paid P5,940,000. 4. It is expected that cash discounts of Pl10,000 will be taken on accounts receivable outstanding at December 31, 2019. 5. Sales returns amounted to P80,000. All returns were from charge sales. 6. During the year accounts totaling P60,000 were written off as uncollectible. Recoveries during the year amounted to P10,000. This amount is not included in the collections. 7. The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the outstanding accounts receivable at year-end. Required: a. Prepare journal entries to record the transactions. b. What is the net realizable value of accounts receivable at year-end?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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