RgSA: The Rsiew Sdrool of Accounlancy hge a46 26

62. What is the adjusting journal entry to record the remaining unlocated difference between the
general ledger and the subsidiary ledger after consideration of all adjustments?
a. Accounts receivable P5,760
Bad debt expense P5,760

,b. Accounts receivable P5,760

Sales P5,760

C. Accounts receiv;rble P4,960

Sales P4,960

d.
Accounts receivable ?9,764
Bad debt expense P9,764
53. What is the accounts receivable balance on December 31, 2Ot4?
a. 793,20O c. 798,960
b. 79B,t6O d. 808,960
64. What is the required allowance for bad debt expense on December 31, 2014?
a, 19,457 c. 29,357
b. 19,857 d. 32,857
65. What ls the accounts receivable net of allowance for bad debts?
a. 774,143 c. 779,5O3
b.779,LO3 d. 779,903

Pf,OTBLEM 21:
You ,are auditing the accounts receivable and the related allowance for bad debts account of Sayote
Inc. The control account of the aforementioned accounts had the following balances:
Accounts Receivable P1-,27A,OAO
Less: Allowance for bad debt _1LZB,O00_)
Net Book Value P1,192,000

Upon your investigation, you found out the following information:

3 ;-.e a:-.p,ei,1 s -3irrrdr -les [erm is n7'3O.

b. The allowance for bad debt account had the following details in the general ledger:

Allowance for Debts

July 31 Write off 24,OOOlJan. 1 Balance 30,ooo
Dec. 31 Provision 72,OAO

c. The subsidiary ledger balances of the company's accounts receivable as of December 31, 2014
contained the following information :
Debit Dalalces Credit !alanqgg
Under one month P540,O00 Kamote Co. P12,000
One to six months 552,000 Kutchay Corp. 21.000
Over slx months 22B,OOO Kalachuchi Inc. 27,OOA
P1,320,000 ___PggpQg_
Additional information
' The credit balance with Kamote Co. was for an overpayment from the customer. The
company delivered additional merchandise to Kamote Co. on January 3. 2O15 to cover such
overstatement.
' The credit balance of Kutchay Corp. was due to a posting error, the amount should have
been credited to Kutchara Corp for a 6O day outstanding receivable.
' The credit balance from Kalachuchi Inc. was a cash advance for a delivery to be made on
January 15, 2015.

d. It was estimated that 1 percent of accounts under one month is doubtful of collection while 2
percent of accounts one to six months are expected to require an allowance for doubtful of
collection. The accounts over six rnonths are analyzed as follows:
Defi nitely uncollecti ble P72,000
Doubtful (estimated to be 50o/o collectible) 36,0O0
Apparently good, but slow (estimated.to be 90o/o collectible) 120,000
Total _Ie?gpqq_
Required: Based on your audit, answer the following: