ermediate Accounting 1.docxOpen with Google DocsThe following information is available for AVS-CVN Company:Credit sales during 2019Accounts recelvable deemed worthless and written off during 2019Allowance for doubtful accounts at December 31, 201822.P 8,000,000180,000160,000As a result of a revlew and aging of accounts receivable in early January 2020, however, It has been determined that an allowance fordoubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for theyear ended December 31, 2019?a. P130,000b. P110,000P90,000d. P270,000C.23. Terrific Corporation, an equipment distributor, sells a piece of machinery with a list price of P800,000 to Archer Company. Per agreement,Archer will pay P850,000 in one year evidenced by a note. Terrific normally sells at cash price equivalent to 90% of list price. The note has amarket rate of 12%. How much should be recorded as Sales? (The PV of 1 at 12% for 1 year is 0.89)P756,500b. P720,000C. P850,000d. P800,000a.24. On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face value of P4,000,000 and bearinginterest at 12%. The note is due on August 31, 2022 and interest is payable every August 31 starting on August 31, 2018. What is theamount of interest income to be reported on the December 31, 2019 income statement? (The PV of 1 at 12% for 5 years is 0.56)P268,800C. P480,000d. P640,000a.b.P160,00025. On July 1, 2019, Optimistic Company sold a machine costing P500,000 with accumulated depreciation of P380,000. On the date of sale,Optimistic received as consideration for the sale, a P300,000 noninterest-bearing note, due July 1, 2022. There was no established exchangeprice for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type at July 1, 2019 was 12%and 13% on December 31, 2019. In relation to this transaction, what is the total income to be recognized in Optimistic's 2019 statement ofcomprehensive income? (Round PVF to 4 decimals)P119,165P101,445c. P180,000d. P106,3523 / 5a.PageQ +b.

22) The amount to be charged as bad debt expense is shown below: Opening balance of allowance…

The following information is available for AVS-CVN Company: Credit sales during 2019 Accounts recelvable deemed worthless and written off during 2019 22. P 8,000,000 180,000 160,000 Allowance for doubtful accounts at December 31, 2018 As a result of a review and aging of accounts recelvable in early January 2020, however, It has been determined that an allowance fo doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for th year ended December 31, 20197 a. P130,000 b. P110,000 C. P90,000 d. P270,000

The following information is available for AVS-CVN Company: Credit sales during 2019 Accounts recelvable deemed worthless and written off during 2019 22. P 8,000,000 180,000 160,000 Allowance for doubtful accounts at December 31, 2018 As a result of a review and aging of accounts recelvable in early January 2020, however, It has been determined that an allowance fo doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for th year ended December 31, 20197 a. P130,000 b. P110,000 C. P90,000 d. P270,000

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 12E: Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Selbys Bike Co....

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Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Selbys Bike Co. had a debit balance of 7,200 as of December 31, 2016. Journalize the adjusting entry for uncollectible accounts as of December 31, 2016. Journalize the adjusting entry for uncollectible accounts as of December 31, 2016. Selbys Bike Co. is a wholesaler of motorcycle supplies. An aging of the companys accounts receivable on December 31, 2016, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2016.
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.