Receivables – 3rd

You are examining the financial statements of SALUYOT COMPANY for the year ended December 31,
2018. Your audit of the accounts receivable and other related accounts disclosed the following
information:

1. The December 31, 2018, balance in the Accounts Receivable control account is Php 788,000.

2. The only entries in the Expected credit loss account were:

a. A credit for Php 1,296 on December 1, 2018, because customer A remitted in full for the account
charged off October 31, 2018.

b. A debit on December 31 for the amount of the credit to Allowance credit loss.

3. The Allowance for credit loss account is presented below:

Date Particulars Debit Credit Balance

Jan. 1 Balance 15,250
Oct. 31 Uncollectible:
Customer A 1,296
B 3,280
C 2,256 6,032 9,218
Dec. 31 3% of 788,000 23,640 32,858

4. An aging schedule of the accounts receivable as of December 31, 2018, and the decisions are shown
below:

Net Debit Amount to which the allowance is to be adjusted after

AGE Balance adjustments and corrections have been made
0-1 month 372,960 1%
1-3 months 307,280 2%
3-6 months 88,720 3%
Over 6 months 24,000 Definitely uncollectible, 4,000; Php 8,000 is considered
to be 50% uncollectible; the remainder
is estimated to be 80% collectible
Php 792,960

5. There is a credit balance in one account receivable (0-1 month) of Php 8,000; it represents an advance
on a sales contract; also there is a credit balance in one of the 1 –3 months accounts receivable of Php
2,000 for which merchandise will be accepted by the customer.

6. The Accounts Receivable control account is not in agreement with the subsidiary ledger. The
differences cannot be located, and the company’s accountant decides to adjust the control to the sum
of the subsidiaries after corrections are made.
Determine the ff. amounts:

1. Required allowance balance (per aging) on December 31, 2018

2. Net reliazable value of Saluyot’s accounts receivable on December 31, 2018

3. Expected credit loss for 2018