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    Ashley Levy San Pedro
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    AR

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    AR

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    38 views5 pages

    Receivables

    Uploaded by

    Ashley Levy San Pedro
    AR

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    of 5
    The corrects! ees more etues. (oe eee ‘eciplents) the extty Geass Se = Wonster ef 8 fnancal coset eS Ce Ee wanster of a franoal asset ¢, al cope oa are met oe ‘The en hs no oohgtion to pay amar m= me Seal oes Gee 2 SR Sroounee ermal eset b. The entty is promoted by be tems of oe Manster contac fom sting & Bespsg Se orgal asset omer than we Samy Se ‘eventual recipients for the abiigason ty eventual recpens for the Se = The ently has an cbigeson te cent ay aon flows kcal on Bena ef De eves ese without matera slay, 6. lorthese 6. How is transfer of risks and rewarcs evetetes? 2 By comparing the e=tty’s expomue, Set ae Suny, ng temafter the tanster, win the vecaSony = Oe senda” “amounts and timing OF the net cash fous of Se ove does tronsterred asset» SST SEStb By determining the transferee's apaty se be. SAT asset Either aor b 1. How to generate cash from the receivables without Neither @ nor collecting them? ee te eae snias tau 7. An entity has not retained control of 8 tatsteves a B. Use the recelvables 2 collateral (ows) deere Ge c. Either a or b.* ruaterved ose d. Neither a nor b. 'b. The transferee does not have the practical 25ity tool te tonstered eset 5 1d» company sot recevobag 19 wrocer —, Wawuauametame | zewhy wor ‘and the transferee canst , Tonstred ase — THE ove te ety of cuit garing Ste Paenease mee nome stay exeroses ts ono 8. 2, Allef the above. 11, Avent Company self a financial asset with a carrying ‘Birount of P500,000 for PGO0,000 and simultaneously lets into. total return swap with the buyer uncer GER dhe buyer wil return any nereases in value to ROSE “Sha? Avent wil pay the. buyer interest plus ESmpensation for any decreases in the value of the Grccatment. "Avent expects tne fair value of the finanera! asset to decrease by 40,000. How much Should Avent recognize as gain on sale of financial 3° 7500,000 760,000 &. Pr00,000 ape 12. Taaay Corporation sels a porate of short-term Teer metres earned "on ta) books wt Fees a 9,000,009 and promises to py uP Fee empenate the ayer ane when Feo 0 reaped creck sses ae Sgn Pa oer ogg and tare are no other noncart less ha ese recognise fs ae on Sale receusvies? A 'P160,000 c. P40,000, & plooseea 4 Which of the fatlowing is 3 method to generate cash 13. fom eccounts receivables? ‘assigament factor 5 No Yes No wren statement ss wcurect regercing PAGES Of p. The aecurts pledged are not Socoat ledger conero! aceouTt wonseres Ba ac borromog snecces NY g, Sespecalescurtes Sear rearng occa 17 se me fotowng normaton forthe nex Deo QUEENS. Satay Co, aesigned 500,000 of accounts recenanle fal se res TRESS eel ee ea emcee Rinigeren rerest rate on te note wes 20%. Dunng eof fat’ monty. Sipaiay cobected P110,000 on assigned a eae oeee tee ‘Secours totaling P3,700. Tee ao gpg mes rein wremseenans Tee : 10,000, paz0,009 16. Entnes auning the fst month would incase & Br Gent to Eas ef PLO. SEO. 3. dept to Bag Debts Expense of P3,700. 2 Geant Alowance for OoubtTul ACcounKs of 3,709, Geb to Accounts Recewabie ef PLIS.£30. 17. Oa Novertber 30, accounts receivable 9 the amount of Sopass00 were ‘assigned. to Kasey France Co. By Kainsvas seeunty for a.toan ef P7SO,000. Kanan Charged a see commassion on the aeccunts; the ffeenest fate on the note ie 12%. Dunng December, ‘Glan collected P350,000 09 assigned actourts after Geducting PSEO of discounts. ‘Kalan wrote of 3 PS30 Sssigned account. On December 31, Kalan remitted to Xopan the amount collected plus cre months interest fon the note How much is Kalan’s equity In the assigned accounts revevabie as of December 31? bP1s9,470) « prai.a10 b. P1ana70 ©. P1Es,910 Use the following information for the next four questions. Setier Cor, fetores M400,000 ef accounts resewabie wth Buyer, tre. ona wrnout recourse taste The. fats” Eharge mas’ 17580 of the amount of reeewabiee 8d a0 Sasonal 496 was retarnes to cover probable agnosie Invaasiton te the fact” charge, & finance charge wos stele equal to 12% annuniy for any amouats advanced ror to the cue dates gfe ecewabes Tos ehege mae Eased on 100% ote face value. The average creat term seas 30 days from the sate of transfer According ts the Tea of the fctrg. agreement Seer nase Nande wrned goods, allowances, an shiping dapates. Boyer tras to cotect the cash and acksowleage sacs oacouTte TAF such dacounts were to Be charged to Seher crest Fosses were to be absorbed by Buyer. Sele” Nas not fecorded any bad debt expense related tS the facto receivables, | The following transactions pertan to. ths factoring arrangement: hug. 1 The recewable records were transferred to Boyer. Buyer collected P234,000 cunng August after allowing for P9000 of sales eiscounts n ‘lesion Rte ETVICeS, 1 ~ caerauet and hang cet ENC. ae “me @) 20UeN ete» facie fRcge me A wy sree naveg expo HE.) piece! rewne Mt sare wan cr eonage 2280 Eason raae SAR £9, uyer yan 8 8 expense nccounts. transferred to, AeSOUM recwvatie "008 %°) ttmatety resize tp Sele co, Pan29 © 380,000 — pi males 2 BERBa0" “Cs net income om me tactonag? Seng eo ema Ne et tn sins ro See SER, onan, anes reno nae rhs Seah cca yer ens 2 ne en to Soccer PRS at oes cea Sree a es Ses ale cage Sy ger, ese eae oy Seated or ener on» Senay eee 5, Resin caer “aero ; 2 pea dE Brom sry Tote issi a. P556,685. ee P8328, _ eee ree a Mors aeumeg the tk of colcubiey and ae See eee Ot GLY 6 os aes ec te, Steen ost ring the recedes wens Se The rae ne coe (interest expense) should be P3138 fs P6L.315 ‘recognizec ‘Over the collection period of tr P16,315 receivables. ai eee SOLUTION GUIDE: ‘The Hinoba-an Department Store wishes to discount 5 ares see te ei Caer Tee Seats ate eae os baa MES Waren Sante ; | ee cae nek Gare Caan 373.000 wrth an bieregt of fae Te an ee In Sosa i irae, ioe Saisie nt amie Soe ema ats, Seto Accounts receivable —_—— from both notes discounted is go mee cometons ee fee BEET ry 25. On May 17, Sagay Co. accepted a P6,500, 8%, 90-day papi oa roa ter tora mar gear Se deans rao08 eee ana Seg eee Sales returns & allow. :<2sus2) 3,280 dishonored and the bank charged P25 protest fee. Rec. from factor Pia, ‘The amount that Sagay Co. would debit to Notes Receivable Dishonored is: i e. 75535 reo a pees 4. 76,130 now do the DIY érill~ Final settlement esa cH Tahal Rec. from factor ae P1.2318 unana_nrte.com.Dh bor, Sats, 230 00, Sneed i < sh samo 4 Accs reat agg 2800 Min Ree 10.000 3. On January 1, Bina! ce satin herrea an nae ads ere ace i oe atest ieee Poneman hy el on on me aro Se” Gear or a. 50,000 one cee : b. Paa,750 4. P62;750 4. On December 1, Casayan Company assigned on a onnetifcation basis’ accounts.” recelable ot 5,000,000 to a bank in consideration for a lean of 30% of the receivables less a 5% service fee on the accounts assigned. Cacayen signed 2 nate for the bank loan. “On December’ 31, ‘Cooayan collected assigned accounts of P3,000,000 less discount of 200,000. Cacayan remitted the collections to the bbank in partial payment forthe loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest Is 196 per month on the loan belance. In its December 31 statement of financial position, Caoayan should report note payable as a current liability at a. P1,745,000 . P1,545,000 b. 1,700,000 4. 2,250,000 se

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