Statement of Affalrs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholden have requested an estimate of the results of a liquidation of the cómpany. Miner's trial balgne follows: Debit P 6,000 63,000 Accounts Credit Cash.. Accounts receivable. Allowance for bad debts. Notes Receivable Accrued Interest on Notes Receivable, Inventory. Buildings.. ACcumulated Depreciation-Buildings. Equipment... ACcumulated Depreciation-Equipment. Prepaid insurance.. Goodwill Accrued Wages-with Priority. Taxes Payable-with Priority. Accounts Payable. P 2,000 Y 50,000 9011200 60,000 182,000 63.000 14,600 1,400 1,100 8,500 6,000 2,400

Statement of Affalrs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholden have requested an estimate of the results of a liquidation of the cómpany. Miner's trial balgne follows: Debit P 6,000 63,000 Accounts Credit Cash.. Accounts receivable. Allowance for bad debts. Notes Receivable Accrued Interest on Notes Receivable, Inventory. Buildings.. ACcumulated Depreciation-Buildings. Equipment... ACcumulated Depreciation-Equipment. Prepaid insurance.. Goodwill Accrued Wages-with Priority. Taxes Payable-with Priority. Accounts Payable. P 2,000 Y 50,000 9011200 60,000 182,000 63.000 14,600 1,400 1,100 8,500 6,000 2,400

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 18MC: Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of...

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Miner Company is being forced into bankruptcy. The Company’s creditors and stockholders have requested an estimate of the results of liquidation of the Company. Miner’s trial balance follows: Accounts Debit Credit Cash P6,000 Accounts receivable 63,000 Allowance for bad debts P2,000 Notes receivable 50,000 Accrued interest on notes receivable 1,200 Inventory 60,000 Buildings 182,000 Accumulated depreciation-Buildings 63,000 Equipment 14,600 Accumulated depreciation-Equipment 1,400 Prepaid insurance 1,100 Goodwill 8,500 Accrued wages 6,000 Taxes payable 2,400 Accounts payable and other liabilities 170,000 Notes payable 80,000 Accrued interest payable 1,600 Common stock 110,000 Retained earnings (deficit) 50,000 Total P436,400 P436,400 The assets are expected to bring cash on…
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On December 31 of the current year the unadjusted trial balance of a company using the Percent of receivables method to estimate bad debt included in the following: Accounts receivable debt balance of 97,700; Allowance for doubtful accounts, credit balance of 1,011. what amount should be debited to bad debts expense, assuming 4% of outstanding account receivable at the end of the current year are estimated to be uncollected
During the second year of operations. Shark Company found itself in financial difficulties. The entity decided to use the accounts receivable as a means of obtaining cash to continue operations. On July 1, 2016, the entity sold P 1,500,000 of accounts receivable for cash proceeds od P1,390,000. No bad debt allowance was associated with these accounts. On December 15, 2016, the entity assigned the remainder of its accounts receivable, P5,000,000 as of that date, as collateral on a P2,500,000, 12% annual interest rate loan from Finance Company. The entity received P2,500,000 less a 2% finance charge. None of the assigned accounts had been collected by the end of the year. It is estimated that 10 % of accounts receivable would be uncollectible. The entity revealed the following data on December 31, 2016: Accounts receivable, excluding factored and assigned accounts 1,000,000 Accounts receivable assigned…