The Tayler Hiro Merchandising has the following trial balance as of January 1, 2019. Account Titles Credit Debit P 586,000 125,000 Cash Accounts Receivable Allowance for Bad Debts Notes Receivable Inventory-Beg. Supplies Prepaid Insurance PPE Accumulated Dep. - PPE Accounts Payable Notes Payable (10%) Income Tax Payable Hiro, Capital April 14 May 30 May 31 August 15 Sept. 25 95,000 75,000 24,000 100,000 ℗ 1,005,000 The following transactions occurred in the current year (2019) as follows: January 2 Paid the 16 months utilities expense amounting to P1,500 per month. April 1 Purchased merchandise from Celtic Goods Inc. List price: P450,000, Terms 10%, 13%, 2/15 n/60. Paid the entire balance of the income tax payable to BIR. Sold merchandise to Super Lolo Marketing amounting to P600,000, Terms: 2/10, n/60, FOB shipping point. Tayler Hiro paid $5,400 freight. Gross profit is 100% based on cost. Paid Celtic Goods Inc. for the merchandise purchased on April 1. Collected the 75% of Super Lolo Marketing's account for the May 30 sales. Sold merchandise to Golden Mart Co. amounting to P320,000, 50% cash payment, and 50% on account. Terms 2/10, n/30, FOB destination. Gross profit is 60% based on sales. Deides Paid P1,500 of shipping costs to UPS for the merchandise sold on Sept. 25 Collected the 40% of account of Golden Mart Co. Collected 85% of the Accounts Receivable from last year's transactions. Received 10%, 3-month note from Super Lolo Marketing for the balance of its account. Oct. 10 Oct. 25 Nov. 3 Dec. 31 2,500 40,000 91,500 195,000 26,000 650,000 P 1.005.000 Additional information: 1. The company uses periodic inventory system. 2. The Notes Payable is 14 months dated December 1, 2018. No accrued interest as of January 1, 2019. 3. Bad debt was estimated to be 3% of outstanding Accounts Receivable. 4. PPE is depreciated at 20% per year. 5. Supplies on hand as of December 31, 2019 amounted to P30,000. 6. Insurance unexpired portion was $5,000. 7. Income tax is based on TRAIN Law Requirements: Prepare the SCI and SFP for the year 2019
The Tayler Hiro Merchandising has the following trial balance as of January 1, 2019. Account Titles Credit Debit P 586,000 125,000 Cash Accounts Receivable Allowance for Bad Debts Notes Receivable Inventory-Beg. Supplies Prepaid Insurance PPE Accumulated Dep. - PPE Accounts Payable Notes Payable (10%) Income Tax Payable Hiro, Capital April 14 May 30 May 31 August 15 Sept. 25 95,000 75,000 24,000 100,000 ℗ 1,005,000 The following transactions occurred in the current year (2019) as follows: January 2 Paid the 16 months utilities expense amounting to P1,500 per month. April 1 Purchased merchandise from Celtic Goods Inc. List price: P450,000, Terms 10%, 13%, 2/15 n/60. Paid the entire balance of the income tax payable to BIR. Sold merchandise to Super Lolo Marketing amounting to P600,000, Terms: 2/10, n/60, FOB shipping point. Tayler Hiro paid $5,400 freight. Gross profit is 100% based on cost. Paid Celtic Goods Inc. for the merchandise purchased on April 1. Collected the 75% of Super Lolo Marketing's account for the May 30 sales. Sold merchandise to Golden Mart Co. amounting to P320,000, 50% cash payment, and 50% on account. Terms 2/10, n/30, FOB destination. Gross profit is 60% based on sales. Deides Paid P1,500 of shipping costs to UPS for the merchandise sold on Sept. 25 Collected the 40% of account of Golden Mart Co. Collected 85% of the Accounts Receivable from last year's transactions. Received 10%, 3-month note from Super Lolo Marketing for the balance of its account. Oct. 10 Oct. 25 Nov. 3 Dec. 31 2,500 40,000 91,500 195,000 26,000 650,000 P 1.005.000 Additional information: 1. The company uses periodic inventory system. 2. The Notes Payable is 14 months dated December 1, 2018. No accrued interest as of January 1, 2019. 3. Bad debt was estimated to be 3% of outstanding Accounts Receivable. 4. PPE is depreciated at 20% per year. 5. Supplies on hand as of December 31, 2019 amounted to P30,000. 6. Insurance unexpired portion was $5,000. 7. Income tax is based on TRAIN Law Requirements: Prepare the SCI and SFP for the year 2019
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 5C: Receivables Issues Magrath Company has an operating cycle of less than one year and provides credit...
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