RECEIVABLES

BUSIA, ALYSSA JANINE B.

EASY
1. Roxy Company provided the following information for the current year:
Accounts receivable 1300000
Credit sales 5400000
Collections from customers, excluding recovery 4750000
Accounts written off 125000
Collection of accounts written off in prior year
(customer credit was not reestablished) 25000
Estimated uncollectible receivables per aging
of receivables at December 31 165000
What is the balance of accounts receivable, before allowance for doubtful accounts on
December 31?
a. 1825000
b. 1850000
c. 1950000
d. 1990000
2-3. Jay Company provided the following data for the current year:
Accounts receivable, January 1 650000
Credit Sales 2700000
Sales returns 75000
Accounts written off 40000
Collections from customers 2150000
Estimated future sales returns at December 31 50000
Estimated uncollectible accounts at 12/31 per aging 110000
What is the balance of accounts receivable?
What is the amortized cost of accounts receivable on December 31?
4. Valiant Company reported the following analysis of current receivables at year-end:
Trade accounts receivable 2000000
Allowance for doubtful accounts (100000)
Claim against shipper for goods lost
in transit in November 300000
Selling price of unsold goods sent by Valiant on
consignment at 150% of cost and not included in ending inventory 600000
Security deposit on lease of warehouse 200000
Total 3000000
What total amount should be reported as current trade and other receivables?
a. 2200000
b. 2400000
c. 2300000
d. 3000000
5. Jinx Company provided the following information for the current year in relation to
accounts receivable:
Accounts receivable, January 1 1300000
Credit Sales 5500000
Sales Return 150000
Accounts written off 100000
Collections from customers 5000000
Estimated future sales return on December 31 50000
Estimated uncollectible accounts per aging at year-end 250000
What amount should be required reported as net realizable value of accounts receivable
om December 31?
a. 1550000
b. 1250000
c. 1300000
 d. 1500000
AVERAGE
6. Rapture Company had the following information for the current year relating to
accounts receivable:
Accounts receivable, January 1 1300000
Credit sales 5400000
Collections from customers, excluding recovery 4750000
Accounts written off 125000
Collection of accounts written off in prior year,
customer credit was not reestablished 25000
Estimated uncollectible receivables per aging at December 31 165000
What is the balance of accounts receivable, before allowance for doubtful accounts, on
December 31?
a. 1825000
b. 1850000
c. 1950000
d. 1990000
7. At year-end, Harem Company reported accounts receivable of P8200000 with the
following analysis:
Accounts known to be worthless 100000
Advance payments on purchase orders 400000
Advances to subsidiary 1000000
Customer's accounts reporting credit balances arising
from sales returns (600000)
Trade accounts receivable 3500000
Subscription receivable due in 30 days 2200000
Trade installments receivable due 1-18 months,
including unearned finance charge of P50000 850000
 Trade accounts receivable from officers, due currently 150000
Trade accounts on which postdated checks are held
and no entries were made on receipt of checks 200000
What is the correct balance of trade accounts receivable?
a. 4650000
b. 4700000
c. 4150000
d. 4050000
8. Tantrum Company provided the following information in relation to accounts
receivable at year-end:
Days outstanding estimated amount % Uncollectible
0-60 1200000 1%
61-120 900000 2%
Over 120 1000000 6%
3100000
During rhe current year, the entity wrote off P70000 in accounts receivable and recovered
P20000 that had been written off in prior years.
At the beginning of current year, the allowance for uncollectible accounts was P60000.
Under the aging method, what amount of uncollectible accounts expense should be
reported for the current year?
a. 90000
b. 80000
c. 70000
d. 60000
9-10. On December 31, 2019, Jovial Company received two P1000000 notes receivable
from customers in exchange for services rendered.
On both notes, interest is calculated on the outstanding principal balance at the annual
rate of 3% and payable at maturity.
The note from Zeta Company, made under customary trade terms, is due in nine months
and the note from Yola Company is due in five years.
The market interest rate for similar notes on December 31, 2019 was 8%.
The present value of 1 due in nine months is. 944 and the present value of 1 due in five
years is. 68.
1. At what amount should the note receivable from Zeta Company be reported on
December 31, 2019?
2. At what amount should the note receivable from Yola Company be reported on
December 31, 2019?

11-13. On January 1, 2019, Empress Bank granted a loan to a borrower. The interest on
the loan is 10% payable annually on December 31, 2019. The loan matures in three years
on December 31, 2021.
Principal amount 5000000
Direct origination cost incurred 457500
Origination fee charged against the borrower 200000
After considering the origination fee charged against the borrower and the direct
origination cost incurred, the effective rate on the loan is 8%.
Required:
1. Determine the carrying amount of the loan on January 1, 2019.
2. Prepare a table of amortization of the direct origination cost.
3. Prepare journal entries for 2019, 2020, and 2021.
14-15. Dainty Company sold accounts receivable without recourse with face amount of
P6000000. The factor charged 15% commission on all accounts receivable factored and
withheld 10% of the accounts factored as protection against customer returns and other
adjustments.
The entity had previously established an allowance for doubtful accounts of P200000 for
these accounts.
By year-end, the entity had collected the factor’s holdback there being no customer
returns and other adjustments.
Required:
Prepare journal entries to record the factoring and the subsequent collection of the
factor’s holdback.
CERVANTES, GILLAN
Easy
1. BCD Company Provided the following information in relation to accounts receivable
at year end.

Days outstanding Estimated Amount %Uncollectible

0-60 1,500,000 1%
61-120 900,000 3%
Over 120 1,000,000 6%

During the current year, the entity wrote off 80,000 in accounts receivable and
recovered 50,000 that had been written off in prior years.

At the beginning of current year, the allowance for uncollectible accounts was 60,000.

Under the aging method, what amount of uncollectible accounts expense should be
reported for the current year?

2. Alpha Company reported the following accounts at year end before adjustments:
Debit Credit
Allowance for doubtful accounts 5,000
Sales
650,000
Sales return 50,000
The entity estimated uncollectible accounts receivable at 5% of net sales.
What amount of doubtful accounts expense should be reported for the current year?
3. Omega company sold goods to wholesalers on terms 3/15, net 30. the identity had no
cash sales but 50% of the customers took advantage of the discount

The entity used the gross method recording sales and accounts receivable
an analysis of the trade accounts receivable at year end revealed the following:

Age Amount Collectible

0-15 days 2,100,000 100%
16-30 days 1,500,000 95%
31-60 days 500,000 90%
Over 60 days 300,000 50%
4,400,000
What amount should be reported as allowance for doubtful accounts at year end?
4. Using the information above, what amount should be reported as allowance for sales
discount at year end?
5.Using the information above, what is the net realizable value of accounts receivable
at year end?
Average
1. Given the following information relating to Topaz trading, a general merchandising
company:

Rate of gross profit on sales 30%

Accounts Receivable, December 31, 2016 90,000
Collections on accounts receivable in 2017
440,000
Cost of goods available for sale in 2017 470,000
Merchandise inventory, December 31, 2017
120,000

Assuming all sales were on account, what was the company's accounts receivable
balance on December 31, 2017?
2. On December 2014, Vivo Corporation sold machine to Oppo Company for P150,000.
Vivo accepted a 10%note receivable for the entire sales price. This note is payable
into 2 equal installments of P75,000 plus accrued interest in December 31, 2015 and
December 31, 2016. On July 1, 2016, vivo discounted the note at a bank at a discount
rate of 12%.

Vivo corporation’s proceeds from the discounted note were?

3. Jolly Inc. prepared an aging of its account receivable at December 31, 2016 and
determined that the amortized cost of the receivables was 300,000. additional
information is available as follows:

Allowance for bad debts, January 1, 2016 – credit balance P

29,000
Accounts written off as uncollectible during 2016 23,500
Accounts receivable December 31, 2016 325,000
Uncollectible accounts recovery during 2016 7,000

What is Jolly's debt expense for the year 2016?

4. JKL Company recorded uncollectible accounts expense of P25,000 during 2017. The
allowance for uncollectible accounts had a balance of P18,500 on December 31.
2016. During the year 2017, JKL wrote off P33,500 of uncollectible receivables and
recovered P7,075 of uncollectible Accounts written off in prior years.

How much will be the allowed for uncollectible accounts December 31, 2017?
5. Orange company reported the following analysis of current receivables at year end:

Trade accounts receivable P 3,000,000

Allowance for doubtful accounts (200,000)
Claim against shipper for goods lost in transit In November
250,000
Selling price of unsold goods sent by
orange on consignment at 150% of cost and
not included in ending inventory
600,000
Security deposit on lease of warehouse 200,000
Total
3,850,000

what is the total amount should be reported as current trade and other receivables?

Hard
1. At the beginning of current year, ABC Company showed the following account
balance:

Accounts Receivable
1,000,000
Allowance for doubtful accounts 40,000

The following summary transactions occurred during the current year:

 Sales on account, 2/30, n/30turn 7,000,000

 collections from customers within the discount period 2,450,000
 Collections from customers beyond the discount period 3,900,000
 Accounts receivable written off as worthless 30,000
 Recovery of accounts previously written off
not included in the above collections 10,000
 Credit memo for sales return 75,000

Prepare the adjustment for doubtful accounts at year end if the entity uses the
percentage of accounts receivable method consistently.

2. Cloud company provided the following information at year-end:

2019 2018
Accounts Receivable 870,000
790,000
Allowance for doubtful accounts (10,000) (12,000)
 Allowance for sales returns (25,000)
(30,000)
Net Realizable Value 835,000
745,000
The entity reported doubtful account expense in 2019 of 20,000 and had products
return for credits totaling 11,000 at sale price.Gross sales for 2019 amounted to 6,
200,000

What amount of accounts receivable was writtenoff of during 2019?

3. How much is the collection from customers during 2019?

4. On January 2019, XYZ Co. sold an equipment with a cost of P250,000 for P400,000.
The buyer paid a down of100,000 and sign a noninterest bearing note for 300,000
payable in equal annual installments of 100,000 every December 31. The prevailing
interest rate for a note of this type is 10%. The present value of an ordinary annuity of
one for 3 periods at 10% is 2.4869. The present value of note is computed by
multiplying the annual installment of 100,000 by the present value factor of 2.4869
for P248,690.

How much is the unearned interest income in gain on the sale of equipment?

5. BCT bank loaned 5,000,000 to bankard company on January 1, 2017. the terms of the
loan require principal payment of 1,000,000 each year for 5 years plus interest at
10%. the first principal and interest payment is due on December 31, 2017. bankard
company made the required payments on December 31, 2017 and December 31,
2018. However, during 2019, BCT bank assessed the collectability of the loan and has
determined that the remaining principal payments will be collected but the collection
of the interest is unlikely. The loan receivable hascarrying amount of 3.3 million
including the accrued interest of 300,000 on December 31, 2019.BCT bank projected
the cash flows from the loan on December 31, 2019.

Date of Cashflow Amount projected

December 31,2020 500,000
December 31, 2021 1,000,000
December 31, 2022 1,500,000

Using the original effective rate of 10%, the present value of one is .9091for 1
period,.8264 for 2 periods and .7513 for 3 periods.

What is the total present value of cash flows and the impairment loss?
CAGALINGAN, ROY VINCE C.
Easy Questions:
1.) During 2018, the RVS Company wrote off uncollectible accounts of P5,000 and
recovered accounts of P4,100 that had been written off in 2017. In addition, the
following information is available:
Accounts Receivable Amortized cost
December 31, 2017 P500,000 P400,000
December 31, 2018 P750,000 P600,000

The uncollectible accounts expense for the year 2018 is

A.) P50,900 C.) P50,009
B.) P59,000 D.) P50,090

2.) Following accounts were abstracted from Churchill Company’s unadjusted trial
balance at December 31,2017
Debit Credit
Accounts Receivable P2,500,000
Allowance for Bad Debts 9,100
Net Credit Sales P4,000,000

Churchill estimates that 4% of the gross accounts receivable outstanding will

become uncollectible. After adjustment at December 31,2017, what is the balance
of the allowance for bad debts?
A.) P100,000 C.) P260,000
B.) P160,000 D.) P364

3.) Ulbert Company had the following information relating to its accounts receivable:
AR 12/31/08 P2,600,000
Credit sales for 2009 10,800,000
Collection from customers during
2019 (including recovery of
50,000) 9,500,000
Accounts written off on 10/31/09 250,000
Collection of accounts written off
in prior years 50,000
Estimated uncollectible receivables
per aging at 12/31/09 330,000

At December 31,2009, Ulbert’s accounts receivable before allowance for

uncollectible accounts, should be.
A.) P3,700,000 C.) P3,900,000
B.) P3,650,000 D.) P3,980,000

4.) Accounts Receivable for WhaleShark Company at December 31, 2010 showed a
balance of P3,000,000. The Allowance for Uncollectible Accounts had a P90,000
 debit balance before the year-end adjustment, Sales during the year totaled
P25,000,000. An aging analysis shows that P150,000 of the outstanding accounts
receivable are estimated to be uncollectible.

How much is the uncollectible accounts expense for 2019?

A.) P240,000 C.) P90,000
B.) P60,000 D.) P150,000

5.) Given the following information relating to Accenture Trading a general

merchandising company:
Rate of gross profit on sales 20%
AR,12/31/2010 P160,000
Collections on accounts receivable in 2011 860,000
Cost of goods available for sale in 2011 920,000
MI,12/31/2011 200,000

Assuming all sales were on account, what was the company’s AR balance on
December 31, 2011
A.) P40,000 C.) P18,000
B.) P20,000 D.) P10,000

Intermediate Questions:
1.) On December 1, 2010, the State Finance Company gave Polonsky Company a
P4, 000,000, 12% loan. Polonsky Company received proceeds of P3.880.000,
after deduction of non-refundable finance and other processing charges of P120,
000. Principal and interest are due in 60 monthly instalments of P89, 000
beginning January 1, 2011. The repayment yields an effective interest rate of
13.4% based on the proceeds of P3,880,000, State Finance Company has the
intention of collecting the contractual cash flows from this loan over the full term
of the loan, thus, does not elect to measure this at fair value.

What amount of interest revenue should State Finance Company recognize for the
year 2010 as a result of this loan?
A.) P34, 327 C.) P43, 372
B.) P43, 327 D.) P43, 480

2.) Given the same information from Question 1. How much is the Interest
Receivable should State Finance Record on December 31, 2011?
A.) P80, 000 C.) P30, 000
B.) P50, 000 D.) P40,000

3.) Soriano, Inc prepared an aging of its accounts receivable at Dec. 31, 2004 and
determined that the amortized cost of the receivables was P500, 000. Additional
information is available as follows:
 Allowance for Bad Debts, 1/1/2004 P56, 000
Accounts written off as uncollectible during 2004 46,000
Accounts Receivable at 12/31/2004 540,000
Uncollectible accounts recovery during 2004 10,000

What is Soriano’s bad debts expense for the year 2019?

A.) P20, 000 C.) 50,000
B.) P100, 000 D.) 10,000
4.) Walker Company recorded uncollectible accounts expense of P40, 000 during
2014. The allowance for uncollectible accounts had a balance of P35, 000 on
December 31; 2013.During the year 2014, Walker wrote off P30, 500 of
uncollectible receivables and recovered P16, 100 of uncollectible accounts written
off in prior years.

How much will be the allowance for uncollectible accounts at December 31,
2014?
A.) P31, 000 C.) P30, 100
B.) P13, 000 D.) P30,010

5.) On December 31, 2001. Jacinto Corporation sold equipment to Chris Company
for P200, 000. Jacinto accepted a 10% note receivable for the entire sales price.
This note is payable in two equal instalments of P100, 000 plus accrued interest
on December 31, 2002, Jacinto discounted the note at a bank at a discount rate of
12%.

Jacinto Corporation proceeds from the discounted note were.

A.) P116, 600 C.) P161, 600
B.) P166, 100 D.) P116,600

Hard Questions:
1.) Favored Company completed the following selected transactions during 2015.

Oct. 1 Assigned accounts of P4,000,000 to Ayala bank under a notification basis.

Ayala Bank made an advance of 75% and deducted a 6% finance charge based on
the amount advanced.
Oct. 31 Received notes from Ayala Bank that P2,000,000 assigned accounts had
been collected, and that Ayala charged Favored 12% interest. The collection is
applied first to interest; and the balance is applied to principal repayment.
Nov. 30 Received notice from Ayala Bank that P1,600,000 had been collected.
Ayala remitted to Favored the amount due to the latter, after deduction 12%
interest on the loan balance.

What is their journal entries in the books of Favored Company?

A.)Oct.1 AR assigned 4,000,000

AR 4,000,000
Oct.1 Cash 2,820,000
Finance Charges 180.000
NP 3,000,000
Oct. 31 Interest Expense 30,000
NP 1,970,000
AR assigned 2,000,000
Nov. 30 NP 1,030,000
Interest Expense 10,300
Cash 559,700
AR assigned 1,600,000
Nov.30 AR 400,000
AR assigned 400,000

B.) Oct.1 AR assigned 4,100,000

AR 4,100,000
Oct.1 Cash 2,820,000
Finance Charges 180.000
NP 3,000,000
Oct. 31 Interest Expense 30,000
NP 1,970,000
AR assigned 2,000,000
Nov. 30 NP 1,030,000
Interest Expense 10,300
Cash 559,700
AR assigned 1,600,000
Nov.30 AR 400,000
AR assigned 400,000
C.) Oct.1 AR assigned 4,000,000
AR 4,000,000
Oct.1 Cash 2,821,000
Finance Charges 181.000
NP 3,002,000
Oct. 31 Interest Expense 30,000
NP 1,970,000
AR assigned 2,000,000
Nov. 30 NP 1,030,000
Interest Expense 10,300
Cash 559,700
AR assigned 1,600,000
 Nov.30 AR 400,000
AR assigned 400,000

D.) Oct.1 AR assigned 4,000,000

AR 4,000,000
Oct.1 Cash 2,820,000
Finance Charges 180.000
NP 1,500,000
Oct. 31 Interest Expense 30,000
NP 1,970,000
AR assigned 2,000,000
Nov. 30 NP 1,030,000
Interest Expense 10,300
Cash 559,700
AR assigned 1,600,000
Nov.30 AR 400,000
AR assigned 400,000
2.) Fournival Company found itself in financial difficulties and decided to use its
accounts receivable as a means of obtaining cash to continue operations. On June
1, 2009, Fournival factored P1,500,000 if accounts receivable for cash proceeds
of P1,390,000. On December 17, 2009, Fournival assigned the remainder of its
accounts receivable, P5,000,000 as of that date, as collateral on a P2,500,000.
12% annual interest rate loan from Eastville Company. Fournival received
P2,500,000 less 2% finance charge.

Additional information are as follows:

Allowance for Bad Debts. 12/31/2009(before adjustments) P64,000
Estimated uncollectibles. 12/31/2009 3% of AR
Accounts Receivable(not includes factored
and assigned accounts) P500,000

Of the assigned accounts, P600,000 had been collected by the end of the year.
How much were the proceeds from factoring and general assignments of the
accounts receivables?
A.) P3.840,000 C.) P2,450,000
B.) P6,290,000 D.) P3,790,000

3.) Given the information of Question 2. How much is the bad debts expense for the
year ended December 31, 2009?
A.) P89,000 C.) P90,800
B.) P98,000 D.) P80,900

4.) On December 31, 2012, the Unreliable Finance Company had a P5,000,000 NR
from Brandy Company. The note bears 10% interest. The books reported accrued
interest of P1,000,000 on this date. Because of financial distress being suffered
by Brandy Company, Unreliable Finance agreed to the restructuring and
modification of the terms of its loan to Brandy as follows:
 - reduction of principal to P8,000,000
- reduction of interest to 8% payable annually beginning December 31, 2013:
- accrued interest on December 31, 2012 is condoned: and
- principal payment was reset to December 31, 2014.

The prevailing market rate of interest for similar obligations on the date of
restructuring decreased to 9%. Use present value factors rounded to two decimal
places.
How much impairment loss should Unreliable Finance Company record on
December 31, 2012 as a result of restructuring?
A.) P11,000,000 C.) P3,246,400
B.) P7,753,600 D.) P5,500,000

5.) Using the same information given in Question 4. At what amount would the
restructured NR be reported at December 31, 2012
A.) P11, 000,000 C.) P3, 246,400
B.) 5,500,000 D.) P7,753,600
DELA CRUZ, ARLON CEDRICK I.
January 1, 2016, Meek Company sold a building and received as consideration
2,000,000 cash and a 3,000,000 non interestsbearing note due on January 1, 2019.
There was no established exchange price for the building and the note had no
ready market.
The prevailing rate of interest for a note of this type was 10%. The present value
of 1 at 10% for three periods is 0.75.

1. What amount of interest revenue should be included in the 2016 income

statement?
2. What amount of interest revenue should be included in the 2017 income
statement?
3. What amount of interest revenue should be included in the 2018 income
statement?
4. What is the total interest income?
Bulacan Company is a dealer in equipment. On December 31, 2016, the entity
sold an equipment in exchange for a non interest bearing taste requiring five
annual payments of 1,000,000. The first payment was made on December 31,
2017
The market interest for similar notes was 8%. The PV of 1 at 8% for 5 periods is .
68, and the PV of an ordinary annuity of 1 at 8% for 5 periods is 3.99.
5. On December 31, 2016, what is the carrying amount of the note receivable?
6. What amount of interest income should be reported for 2017?
7. What is the carrying amount of the note receivable on December 31, 2017?
On December 31, 2016, Budol Company sold an equipment for 2,000,000
with an original price of 3,800,000 and carrying amount of 1,800,000.
The terms of the sale were 500,000 down payment and 1,000,000 payable
each year on December 31 of the next two years. The sale agreement made no
mention of interest.
However, 9% would be a fair rate for this type of transaction. The present
value of an ordinary annuity of 1 at 9% for 2 years is 1.76.

8. What is the interest income for 2017?

9. What is the carrying amount of the note receivable on December 31, 2017?
On December 31, 2016, The Best Company sold used equipment with
carrying amount of 2,000,000 in exchange for noninterest bearing note of
4,000,000 requiring 10 annual payments of 400,000. The first payment was
made on December 31, 2017.
The market interest for similar note was 12%. The present value of an
ordinary annuity of 1 at 12% is 5.65 for ten periods and 5.33 for 9 periods.

10. What is the gain on sale of equipment to be recognized in 2016?

 On August 31, 2016, Gumamela Company discounted with recourse a note at
the bank at discount rate of 15%. The note was received from the customer on
August 1, 2016 is for 90 days, has a face value of 8,000,000 and carries an
interest rate of 14%
The discounting transaction is accounted for as secured borrowing.
The customer paid the note to the bank on October 20, 2016, the date of
Maturity.

11. What is the interest expense to be recognized on August 31, 2016?

On June 30, 2016, Rayray Company discounted at the bank a customer
5,000,000, 6-month, 15% note receivable dated April 30, 2016. The bank
discounted the note at 12% without recourse.
12. What is the amount received from the note receivable discounting?
Abra Company accepted from a customer 2,000,000, face amount 6-month
8% note dated April 15, 2016. On the same date, the entity discounted the note
without recourse at a 15% discount rate.
13. What amount of cash was received from the discounting?
14. What is the loss on note receivable discounting?
Freelance Company provides a financing to other entities by purchasing their
accounts receivable on a non-recourse basis. Freelance charges clients a commission of
20% on all receivables factored. In addition, Freelance withholds 10% of receivables
factored as protection against sales returns and other adjustments.Freelance credits the
10% withheld to Clients Retainer account and makes payments to clients at the end of
each month so that the balance in the retainer is equal to 10% of unpaid receivables at the
end of the month. Experience has led Freelance to establish an allowance for doubtful
accounts of 4% of all unpaid receivables purchased. During the current year, Freelance
purchased receivables from Motorway Compay totaling 2,000,000. Motorway had
previously established an allowance for doubtful accounts for these receivables at
200,000. By the year end, Freelance collected 2,500,000 on these receivables.
15. What is the loss on factoring to be recognized by Motorway Company?
ACHACOSO, PATRICIA ANNE D.
Easy
Wellington Corp. has outstanding accounts receivable totaling $2.54 million
as of
December 31 and sales on credit during the year of $12.8 million. There is also a debit
balance of $6,000 in the allowance for doubtful accounts. If the company estimates that
1% of its net credit sales will be uncollectible, what will be the balance in the allowance
for
doubtful accounts after the year-end adjustment to record bad debt expense?
a. $ 25,400.
b. $ 31,400.
c. $122,000.
d. $134,000
Wellington Corp. has outstanding accounts receivable totaling $2.54 million
as of
December 31 and sales on credit during the year of $12.8 million. There is also a debit
balance of $6,000 in the allowance for doubtful accounts. If the company estimates that
1% of its net credit sales will be uncollectible, what will be the balance in the allowance
for
doubtful accounts after the year-end adjustment to record bad debt expense?
1. Wellington Corp. has outstanding accounts receivable totaling P2.54 million as of
Dec. 31 and sales on credit during the year of P12.8 million. There is also a debit
balance of P6,000 in the allowance for doubtful accounts. If the company
estimates that 1% of its net credit sales will be uncollectible, what will be the
balance in the allowance for doubtful accounts after the year-end adjustment to
record bad debt expense?
a. P 25,400
b. P 31,400
c. P 122,000
d. P 134,000

2. Wellington Corp. has outstanding accounts receivable totaling P6.5 million as of

Dec. 31 and sales on credit during the year of P24 million. There is also a credit
balance of P12,000 in the allowance for doubtful accounts. If the company
estimates that 8% of its outstanding receivables will be uncollectible, what will be
the amount for bad debts expense recognized for the year?
a. P 532,000
b. P 520,000
c. P 1,920,000
d. P 508,000

3. At the close of its first year of operations, Dec 31, 2010, Ming Company had
accounts receivable of P540,000, after deducting the related allowance for
doubtful accounts. During 2010, the company had charges to bad debts expense of
P90,000 and wrote off, as uncollectible accounts receivable of P40,000. What
 should the company report on its balance sheet at Dec 31, 2010, as accounts
receivable before the allowance for doubtful accounts?
a. P 670,000
b. P 590,000
c. P 490,000
d. P 440,000

4. Before year-end adjusting entries, Dunn Company’s account balances at Dec 31,
2010, for accounts receivable and the related allowance for uncollectible accounts
were P600,000 and P45,000 respectively. An aging of accounts receivable
indicated that P62,500 of Dec 31 receivables are expected to be uncollectible. The
net realizable value of accounts receivable after adjustment is?
a. P 582,500
b. P 537,500
c. P 492,500
d. P 555,000
5. The following information is available for Murphy Company:
Allowance for doubtful accounts at Dec 31, 2009 P
8,000
Credit sales during 2010
400,000
Accounts receivable deemed worthless
And written off during 2010
9,000
As a result of a review and aging of accounts receivable in early January 2011,
however, it has been determined that an allowance for doubtful accounts of
P5,500 is needed at Dec 31, 2010. What amount should Murphy record as “bad
debt expense” for the year ended Dec 31, 2010
a) P 4,500
b) P 5,500
c) P 6,500
d) P 13,500

Moderate
Use the following information for question 1 and 2.
A trial balance before adjustments included the following:
Debit Credit
Sales P 425,000
Sales returns and allowance P 14,000
Accounts receivable 43,000
Allowance for doubtful accounts 760

1. If the estimate of uncollectible is made by taking 2% of net sales, the amount of

adjustment is
a. P 6,700
b. P 8,220
c. P 8,500
d. P 9,740

2. If the estimate of uncollectible is made by taking 10% of gross account

receivables. The amount of the adjustment is
a. P 3,540
b. P 4,300
c. P 4,224
d. P 5,060

3. Sun Inc. factors P 2 million of its account receivables without recourse for a
finance charge of 5%. The finance company retains an amount equal to 10% of
the accounts receivable for possible adjustments. Sun estimates the fair value of
the recourse liability at P75,000. What would be recorded as a gain/loss on the
transfer of receivables?
a. Loss of P100,000
b. Gain of P175,000
c. Loss of P375,000
d. Loss of P75,000

4. Sun Inc. factors P 2 million of its account receivables with recourse for a finance
charge of 3%. The finance company retains an amount equal to 10% of the
accounts receivable for possible adjustments. Sun estimates the fair value of the
recourse liability at P100,000. What would be recorded as a gain/loss on the
transfer of receivables?
a. Gain of P60,000
b. Loss of P160,000
c. Gain of P360,000
d. Loss of P100,000

5. Moon Inc. factors P 1 million of its account receivables with recourse for a
finance charge of 4%. The finance company retains an amount equal to 8% of the
accounts receivable for possible adjustments. Moon estimates the fair value of the
 recourse liability at P100,000. What would be the debit to cash in the journal
entry to record this transaction?
a. P 1,000,000
b. P 960,000
c. P 880,000
d. P 780,000
Hard
Use the following information for questions 1 and 2.
Geary Co. assigned P400,000 of accounts receivable to Kwik Finance Co. as a security
for loan of P335,000. Kwik charged a 2% commission on the amount of the loan; the
interest rate on the note was 10%. During the first month, Geary collected P110,000 on
assigned accounts after deducting P380 of discounts. Geary accepted returns worth
P1,350 and wrote off assigned accounts totaling P2,980.
1. The amount of cash Geary received from Kwik at the time of the transfer was?
a. P 301,500
b. P 327,000
c. P 328,300
d. P 335,000

2. Entries during the first month would include a

a. Debit to cash of P110,380
b. Debit to bad debts expense of P2,980
c. Debit to allowance for doubtful accounts of P2,980
d. Debit to accounts receivable of P 114,710
3. On January 1, 2010 West Co. exchanged equipment for a P400,000 zero-interest-
bearing note due on January 1, 2013. The prevailing rate of interest for a note of
this type at January 1, 2010 was 10%. The present value of P1 at 10% for three
period is 0.75. what amount of interest revenue should be included in West’s 2011
income statement?
a. P 0
b. P 30,000
c. P 33,000
d. P 40,000

4. On December 31, 2010, Green Company finished consultation services and

accepted in exchange a promissory note with a face value of P400,000, a due date
of December 31, 2013, and a stated rate of 5%, with interest receivable at the end
of each year. The fair value of the services is not readily determinable and the nots
is not readily marketable. Under the circumstances, the note is considered to have
an appropriate imputed rate of interest of 10%.

The following interest factors are provided:

Interest
Rate
 Table Factors for three periods 5%
10%
Future Value of 1 1.15763
1.33100
Present Value of 1 .86384 .
75132
Future Value of Ordinary Annuity of 1 3.15250
3.31000
Present Value of Ordinary Annuity of 1 2.72325
2.48685

How much is the present value of the note?

a. P350,265
b. P360,725
c. P300,528
d. P345,634
5. On June 1,2010, Yang Corp, loaned Gant P300,000 on a 12%, payable in five
annual installments of P60,000 beginning January 2, 2011. In connection with this
loan Gant was required to deposit P3,000 in a zero-interesting-bearing escrow
account. The amount held in escrow is to be returned to Gant after all principal
and interest payments have been made. Interest on the nots is payable on the first
day of each month beginning July 1, 2010. Gant made timely payments through
November 1, 2010. On January 2, 2011, Yang received payment of the first
principal installment plus all interest due. At December 31,2010, Yang’s interest
receivable on the loan to Gant should be.
a. P0
b. P3,000
c. P6,000
d. P9,000
ABASTILLAS, KER A.
EASY

1. If a company purchases merchandise on terms of 1/10, n/30, the cash discount

availableis equivalent to what effective annual rate of interest (assuming a 360-day
year)?

2. AG Inc. made a $10,000 sale on account with the following terms: 1/15, n/30. If the
company uses the net method to record sales made on credit, how much should be
recorded as revenue?

3. AG Inc. made a $10,000 sale on account with the following terms: 1/15, n/30. If the
company uses the gross method to record sales made on credit, what is/are the debit(s) in
the journal entry to record the sale?

4. AG Inc. made a $10,000 sale on account with the following terms: 2/10, n/30. If the
company uses the net method to record sales made on credit, what is/are the debit(s) inthe
journal entry to record the sale?

5. Wellington Corp. has outstanding accounts receivable totaling $2.54 million as of

December 31 and sales on credit during the year of $12.8 million. There is also a debit
balance of $6,000 in the allowance for doubtful accounts. If the company estimates that
1% of its net credit sales will be uncollectible, what will be the balance in the allowance
fordoubtful accounts after the year-end adjustment to record bad debt expense?

MODERATE

1. Sun Inc. factors $2,000,000 of its accounts receivables without recourse for a finance
charge of 5%. The finance company retains an amount equal to 10% of the accounts
receivable for possible adjustments. Sun estimates the fair value of the recourse liability
at$75,000. What would be recorded as a gain (loss) on the transfer of receivables?

a. Loss of $100,000.
b. Gain of $175,000.
c. Loss of $375,000.
d. Loss of $75,000.

2. Sun Inc assigns $2,000,000 of its accounts receivables as collateral for a $1 million 8%
loan with a bank. Sun Inc. also pays a finance fee of 1% on the transaction upfront. What
would be recorded as a gain (loss) on the transfer of receivables?

a. Loss of $20,000.
b. Loss of $160,000.
c. Loss of $180,000.
d. $0.
 3. Moon Inc. factors $1,000,000 of its accounts receivables with recourse for a finance
charge of 4%. The finance company retains an amount equal to 8% of the accounts
receivable for possible adjustments. Moon estimates the fair value of the recourse liability
at $100,000. What would be the debit to Cash in the journal entry to record this
transaction?

a. $1,000,000.
b. $960,000.
c. $880,000.
d. $780,000.

4. Maxwell Corporation factored, with recourse, $100,000 of accounts receivable with

HuskieFinancing. The finance charge is 3%, and 5% was retained to cover sales
discounts, salesreturns, and sales allowances. Maxwell estimates the recourse obligation
at $2,400. Whatamount should Maxwell report as a loss on sale of receivables?

a. $ -0-.
b. $3,000.
c. $5,400.
d. $10,400.

5. Remington Corporation had accounts receivable of $100,000 at 1/1. The only

transactions affecting accounts receivable were sales of $600,000 and cash collections of
$550,000. The accounts receivable turnover is

a. 4.0.
b. 4.4.
c. 4.8.
d. 6.0.

HARD (5 pts)

On May 1, Dexter, Inc. factored $800,000 of accounts receivable with Quick Finance on a
without recourse basis. Under the arrangement, Dexter was to handle disputes concerning
service, Finance was to make the collections, handle the sales discounts, and absorb the credit
losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored
and retained an amount equal to 2% of the total receivables to cover sales discounts.

Instructions:
(a) Prepare the journal entry required on Dexter's books on May 1.
(b) Prepare the journal entry required on Quick Finance’s books on May 1.
(c) Assume Dexter factors the $800,000 of accounts receivable with Quick Finance on a with
recourse basis instead. The recourse provision has a fair value of $14,000. Prepare the journal
entry required on Dexter’s books on May 1.
LEGASPI, CHRISTIAN PAUL D.
EASY
1. Frame Company has an 8% note receivable dated June 30 2016, the original amount of
P'1.500.000

Payment of 500,000 in principal plus accrued interest are due annually on July 1, 2017, 2018 and
2019.

1. What is the balance of note receivable on July 1, 2017?

a. 1,500.000

b. 1,000,000

c. 500,000

d. 0

2. In the June 30, 2018 statement of financial position, what amount should be reported as a
current asset for interest on the note receivable?

a.120,000

b. 40,000

c. 80.000

d. 0

2. On June 1, 2016, Yola Company loaned Dale P500,000 on a note, payable in five annual
installments of P100,000 beginn January 1, 2017

In connection with this loan, Dale was required to deposit P5.000 in a noninterest-bearing escrow
account.

The amount held in escrow is to be returned to Dale after all princima and interest payments
have been made.

Interest on the note is payable on the first day of each month beginning July 1, 2016. Dale made
timely payments through November 1, 2016.
On January 1, 2017, Yola received payment of the first principal installment plus all interest due.

On December 31, 2016, what is the accrued interest receivable on the loan?

a. 0

b. 5,000

c. 10,000

d. 15,000

3. Infra Company provided the following data for the current year:

Sales on account 3,600,000

Notes received to settle accounts 400,000

Provision for doubtful accounts 90,000

Accounts receivable written off 25,000

Purchases on account 3,900,000

Payments to creditors 3,200,000

Discounts allowed by creditors 260,000

Merchandise returned by customer 15,000

Collections received to settle accounts 2,450,000

Notes given to creditors in settlement of accounts 250,000

Merchandise returned to suppliers 70,000

Payments on notes payable 100,000

Discounts taken by customers 40,000

Collections received in settlement of notes 180,000

What is the net realizable value of accounts receivable at year-end?

a. 605,000

b. 890,000

c. 825,000

d. 670,000

4. Jay Company provided the following data relating to accounts receivable for the current year:

Accounts receivable, January 1 650,000

Credit sales 2,700,000

Sales returns 75,000

Accounts written off 40,000

Collections from customers. 2,150,000

Estimated future sales returns at December 31 50,000

Estimated uncollectible accounts at 12/31 per aging 110,000

What amount should be reported as net realizable value of accounts receivable on December 31?

a. 1,200,000

b. 1,125,000

c. 1,085,000

d. 925,000

5. Roxy Company provided the following information relating to acc receivable for the current
year:
Accounts receivable on January 1 1,300,000

Credit sales 5,400,000

Collections from customers, excluding recovery 4,750,000

Accounts written off 125,000

Collection of accounts written off in prior year

(customer credit was not reestablished) 25,000

Estimated uncollectible receivables per aging

of receivables at December 31 165,000

What is the balance of accounts receivable, before allowance for doubtful accounts on December
31?

a. 1,825,000

b. 1,850,000

c. 1,950,000

d. 1,990,000

MODERATE

1. Ayala Company sold an equipment with a carrying amount of P800,000, receiving a

noninterest-bearing note due in three years with a face amount of P1,000,000. There is no
established market value for ther equipment.

The interest rate on similar obligations is estimated at 12%. The present value of 1 at 12% for
three periods is .712.

1. What amount should be reported as gain or loss on sale of

equipment?

a. 200,000 gain

b. 200,000 loss

c. 88,000 gain

d. 88,000 loss
2. What amount should be reported as interest income for first year?

a. 288,000

b. 120,000

c. 96,000

d. 85,440

2. On January 1, 2016, Mill Company sold a building and received as consideration P1,000,000
cash and a P4,000.000 noninterest note due on January 1, 2019.

There was no established exchange price for the building and the note had no ready market.

The prevailing rate of interest for a note of this type was 10%. The value of 1 at 10% for three
periods is 0.75

What amount of interest revenue should be included in the 2017

income statement?

a. 370,000

b. 400,000

c. 300,000

d. 330,000

3. Faith Company provided the following information relating to current

Operations:

Account receivable, January 1 4,000,000

Account receivable collected 8,400,000

Cash Sales 2,000,000

Inventory, January 1 4,800,000

Inventory, December 31 4,400,000

Purchases 8,000,000

Gross margin on sales 4,200,000

What is the balance of accounts receivable on December 31?

a. 8200,000

b. 6,200,000

c. 2000.000

d .4,200,000

4. Honduras Company revealed a balance of P8,200,000 in the accounts receivable control

account at year-end.

An analysis of the accounts receivable showed the following:

Accounts known to be worthless 100,000

Advance payments to creditors on purchase orders 400,000

Advances to affiliated entities 1,000,000

Customers' accounts reporting credit balances arising

from sales returns (600,000)

Interest receivable on bonds 400,000

Trade accounts receivable -- unassigned 2,000,000

Subscription receivable due in 30 days 2,200,000

Trade accounts receivable - assigned (Finance

Company's equity in assigned accounts is P500,000) 1,500,000

Trade installments receivable due 1 - 18 months,

including unearned finance charge of P50,000 850,000

Trade accounts receivable from officers, due currently 150,000

Trade accounts on which postdated checks are held

and no entries were made on receipt of checks 200,000

Total 8,200,000

What amount should be reported as trade accounts receivable at year-end?

a. 4,650,000

b. 4,700,000

c. 4,150,000

d. 4,050,000

5. Von Company provided the following data for the current year in relation to accounts
receivable:

Debits

January 1 balance after deducting credit balance of P30,000 530,000

Charge sales 5,250,000

Charge for goods out on consignment 50,000

Shareholders subscriptions 200,000

Accounts written off but recovered 10,000

Cash paid to customer for January 1 credit balance 25,000

Goods shipped to cover January 1 credit balance 5,000

Deposit on contract 120,000

Claim against common carrier 15,000

Advances to supplier 155,000

Credits

Collection from customers, including overpayment of 50,000 5,200,000

Writeoff 35,000

Merchandise returns 25,000

Allowances to customers for shipping damages 15,000

Collection on carrier claim 10,000

Collection on subscription 50,000

What is the balance of accounts receivable on December 31?

a. 565,000

b. 595,000

c. 545,000

d. 495,000

DIFFICULT

1. Alamo Company sold a factory on January 1, 2016 for P7,000,000. The entity received a cash
down payment of P1,000,000 and a 4-year 12% note for the balance.

The note is payable in equal annual payments of principal and interest of 1,975,400 payable on
December 31 of each year until 2019.

What is the interest income for 2016?

a. 840,000

b. 720,000

c. 120,000
d. 975,400

What is the carrying amount of the note receivable on December 31, 2016?

a. 4,500,000

b. 4,744,600

c. 4,624,600

d. 4,025,600

2. Jean Company purchased from Carmina Company a P2,000,000,8%, Five-year note that
required five equal annual year-end payment of P500,900. The note was discounted to yield a 9%
rate to Jean Company.

At the date of purchase Jean Company recorded we now at the value of P1,948,500.

What is the total interest revenue earned by Jean Company over the life of this note?

a. 504,500

b. 556,000

c. 800,000

d. 900,000

3. Wonder Company provided the following transactions affecting accounts receivable during the
current year:

Sales (cash and credit) 5,900,000

Cash received from credit customers, all of whom

took advantage of the discount feature of the

credit terms 4/10,n/30 3,024,000

Cash received from cash customers 2,100,000

Accounts receivable written off as worthless 50,000

Credit memorandum issued to credit customers

for sales returns and allowances 250,000

Cash refunds given to cash customers for sales

returns and allowances 20,000

Recoveries on accounts receivable written off as

uncollectible in prior periods not included in

cash received from customers stated above 80,000

The balances on January 1 were as follows:

Accounts receivable 950,000

Allowance for doubtful accounts 100,000

The entity provided for uncollectible account losses by crediting allowance for doubtful accounts
in the amount of P70,000 for the current year.

1. What is the balance of accounts receivable on December 312

a. 1,300,000

b. 1,426,000

c. 1,280,000

d. 1,220,000

2. What is the balance of allowance for doubtful accounts on

December 31?

a. 120,000

b. 200,000

c. 250,000
d. 170,000

4. Germany Company started business at the beginning of current year.

The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During
the year, the entity wrote off P50,000 uncollectible accounts.

Further analysis showed that merchandise purchased amount P9,000,000 and ending
merchandise inventory was P1,500,000 Goods were sold at 40% above cost.

The total sales comprised 80% sales on account and 20% cash Total collections from customers,
excluding cash sales, amounted to P6,000,000.

1. What is the cost of goods sold?

a. 7,500,000

b. 5,400,000

c. 3,600,000

d. 6,900,000

2. What is the amount of sales on account?

a. 10,500,000

b. 18,750,000

c. 12,000,000

d. 8,400,000

3. What is the net realizable value of accounts receivable at

year-end?

a. 1,980,000

b. 2,350,000

c. 1,930,000

d. 2,400,000
5. When examining the account of Brute Company, it is ascertained that balances relating to both
receivables and payables are included in a single controlling accoung called receivables control
with debit balance of 4,850,000. An analysis of the make- up of this account revealed the
following

Debit Credit

Accounts receivable – customers 7,800,000

Trade accounts receivable – officers 500,000

Debit balances – creditors 300,000

Postdated checks from customers 400,000

Subscriptions receivable 800,000

Account payable for merchandise 4,500,000

Credit balances in customer’ account 200,000

Cash received in advance from customers 100,000

Expected Bad Debts 150,000

After further analysis of the aged accounts receivable, it is determined that the allowance for
doubtful accounts should be 200,000

1. What is the net realizable value of accounts receivable?

a.8,000,000
b.8,500,000
c.8,300,000
d.8,550,000
2. What is the balance of accounts payable

a. 4,200,000

b.4,700,000

c.4,500,000

d.4,800,000
GERONA, CLARISSE JANE

Easy Q1 – Problem

Infra company provided the following data for the current year.

Sales on account 3600000

Notes received to settle accounts 400000

Provision for doubtful accounts 90000

Accounts receivable written off 25000

Purchases on account 3900000

Payment to creditors 3200000

Discounts allowed by creditors 260000

Merchandise returned to customer 15000

Collection received to settle accounts 2450000

Noted given to creditors in settlement of accounts 250000

Merchandise returned to suppliers 70000

Payments on notes payable 100000

Discounts taken by customers 40000

Collections received in settlement of notes 180000

What is the net realizable value of accounts received at year-end?

Easy Q2 – problem

Jay company provided the following data relating to accounts receivable for the vcurrent year:

Accounts receivable, Jan 1 650000

Credit sales 2700000

Sales returns 75000

Accounts written off 40000

Collections from customers 2150000

Estimated future sales returns at Dec 31 50000

Estimated uncollectible accounts at 12/31 per aging 110000

What is the authorized cost of accounts receivable on December 31?

Easy Q3 – Problem

When examining the accounts of Brute Company, it is ascertained that balances relating to both
receivable and payables are included in a single controlling account called “receivables control”
with a debit balance of P4850000. An analysis of the make-up of this account revealed the
following:

Debit Credit

AR – customers 7800000

Trade accounts receivable – officers 500000

Debit balances – creditors 300000

Post dated checks from Customers 400000

Subscription receivable 800000

Accounts payable for merchandise 4500000

Credit balances in customers’ accounts 200000

Cash received om advance from customers 100000

Expected bad depts. 150000

After further analysis of the aged accounts receuvable, it is determined that the allowance for
doubtful accounts should be P200000.

What is the NRV - accounts receivable?

Easy Q4 – Problem
Mill Company’s allowance for doubtful accounts was P1000000 at the end of 2017 and P900000
at the end of 2016.

For the year ended December 31, 2017, the entity reported doubtful accounts expense of
P160000 in the income statement.

What is the amount debited to the appropriate account to write off uncollectible accounts in 2017

Easy Q5 – Problem

Ladd company provided the following data for the current year”

AfDA – Jan 1 180000

Sales 9500000

Sales return and allowances 800000

Sales discounts 200000

Accounts written off as uncollectible 200000

The entity provided for the doubtful accounts expense at the rate of 3% of net sales.

What is the allowance for doubtful accounts at year-end?

Medium Q1 – Problem

Faith company provided the following information relating to the current operations:

AR, Jan 1 4000000

Accounts receivable collected 8400000

Cash sales 2000000

Inventory, Jan 1 4800000

Inventory, Dec 31 4400000

Purchases 8000000

Gross margin on sales 4200000

What is the balance of accounts receivable on December 31?

Medium Q2-34– Problem

Germany Company started business at the beginning of current year. The entity established an
allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote
off P50000 of uncollectible accounts/

Further analysis showed that merchandise purchased amounted to P9000000 and ending
merchandise inventory was P1500000. Goods were sold at 40% above cost.

The total sales comprise 80% sales on account and 20% cash sales. Total collections from
customers, excluding cash sales, amounted to P6000000.

What is the cost of goods sold?

What is the amount of sales on account?

What is the net realizable value of accounts receivable at year-end?

Medium Q5 – Problem

Seiko Company reported the following balances after adjustments at year-end”

2017 2016

Accounts receivable 5250000 4800000

Net realizable value 5100000 4725000

During 2017, the entity wrote off accounts totalling P160000 and collected 40000 on accounts
written off in previous year.

What amount should be recorgnized as doubtful accounts expense for the year ended December
31, 2017?

Difficult Q1-3 – Problem

Von Company provided the following data for the current year in relation to accounts receivable:
Debits

Jan 1 balance after deducting credit balance

Of P30000 530000

Charge Sales 5250000

Charge for goofs out on consignment 50000

Shareholders’ subscription 1000000

Accounts written off but recovered 10000

Cash paid to customer for Jan 1 credit balance 25000

Goods shipped to cover Jan 1 credit balance 5000

Deposit on long-term contract 500000

Claim against common carrier 400000

Advances to supplier 300000

Credits

Collection from customers, including overpayment

Of P50000 5200000

Write off 35000

Merchandise returns 25000

Allowances to customers for shipping damages 15000

Collection on carrier claim 50000

Collection on subscription 200000

What is the balance of accounts receivable on December 31?

What total amount of trade and other receivables should be reported under current assets?

What total amount of other receivables should be reported under noncurrent assets?
Difficult Q4-5 – Problem

Wonder company provided the following transactions affecting accounts receivable during the
current year:

Sales – cash and credit 5900000

Cash received from credit customers, all of whom

Took advantage of the discount feature of the

Credit terms 4/10,n/30 3024000

Cash received from cash customers 2100000

Accounts receivable written off as worthless 50000

Credit memorandum issued to credit customers

For sales return and allowances 250000

Cash refunds given ro cash customers for sales

Return and allowances 20000

Recoveries on accounts receivable written off as

Uncollectible in prior periods not included in

cash received from customers stated above 80000

Balances on January 1

Accounts Receivable 950000

AfDA 100000

The entity provided t=for uncollectible account losses by crediting allowance for doubtful
accounts in the amount of P70000 for the current year.

What is the balance of accounts receivable on December 31?

What is the balance of allowance for doubtful accouns on December 31?