Receivables increased by P240, 000. Planned assets increased by P600,000. Inventory decreased by P1, 500,000. Notes payable: a P800, 000 decline More details: BT21 Co. received a P2, 000,000 bank loan throughout the year and paid P100, 000 in interest. On December 31, 2021, P80, 000 in interest will have accrued. The amount of interest due at the end of 2020 was P120, 000. A shareholder gave equipment worth P800, 000 in carrying value and P1,000,000 in historical cost to BT21 Co. in 2021. The item's fair market value is P600, 000. In 2021, BT21 declared dividends of P160, 000. nnual profit (loss)?

Receivables increased by P240, 000. Planned assets increased by P600,000. Inventory decreased by P1, 500,000. Notes payable: a P800, 000 decline More details: BT21 Co. received a P2, 000,000 bank loan throughout the year and paid P100, 000 in interest. On December 31, 2021, P80, 000 in interest will have accrued. The amount of interest due at the end of 2020 was P120, 000. A shareholder gave equipment worth P800, 000 in carrying value and P1,000,000 in historical cost to BT21 Co. in 2021. The item's fair market value is P600, 000. In 2021, BT21 declared dividends of P160, 000. nnual profit (loss)?

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

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5MC

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At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% 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 debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods? A. $3,100 B. $13,800 C. $10,700 D. $77,500
Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000
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