Sales on account P3,600,000

Notes received to settle accounts P400,000

Provision for doubtful accounts P90,000

Accounts receivable determined to be worthless P20,000

Merchandise returned by customer P15,000

Collections received to settle accounts P2,450,000

Discounts permitted to be taken by customers P45,000

Collections received in settlement of notes P150,000

Installment receivable, normally due 1 to 2 years P300,000

Cash advances to subsidiaries P400,000

Subscription receivable due in 60 days P300,000

Deposit on contract P120,000

Claims against common carrier P100,000

Shareholders' subscription P200,000

Customers' credit balance P250,000

Collection on carrier claims P40,000

Collection on subscription P50,000

Debit balance creditors P200,000

Customers' postdated check P250,000

Received payment form a receipt of P150,000, 2/10, n/30, FOB shipping point, freight prepaid P10,000.
Collection beyond discount period. Net method is used on sales on account.

Received payment form a receipt of P200,000, 3/10, n/30, FOB destination, freight collect P15,000.
Collection within discount period. Net method is used on sales on account.

Required: compute trade debtor; compute trade and other receivables under current assets

2. Otlum Company prepared an agıng of accounts receivable on December 31 and determined that the
net realizable value of the accounts receivable was P2,500,000.
Allowance for uncollectible accounts on January 1 P280,000

Accournts written off as uncollectible P230,000

Accounts receivable on December 31 P2,700,000

Uncollectible accounts recovery P50,000

Required: What is the uncollectible accounts expense for the current year?

3. Queen Company reported the following balances after adjustment at year-end

2016

Accounts receivable P4,800,000

Net reaizable value P4,725,000

2017

Accounts receivable P5,250,000

Net realizable value P5,100,000

During 2017, the entity wrote otf customer accounts totaling P160,000 and collected P40,000 on
accounts written off in previous years.

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

4. Where the Operating cycle extends beyond one year because of narmal credit terms as in the case of
installment sales

A. The entire receivables are classified as current with disclosure of the amount not realizable within one
year.

B. The entire receivables are shown as noncurrent.

C. The portion due in one year is shown as current and the balance as noncurrent

D. The receivables are not recognized.

10. In the case of long-term real estate installment sales

A. The entire receivables are shown as current without a disclosure of the amount not currently due.

B. The entire receivables are shown as noncurrent.

C. Only the portion currently due is shown as current and the balance as noncurrent.
d. The entire receivables are shown as current with disclosure of the amount not currently due.

5. On January 1, 2016, Jocose Company reported the following

Accounts receivable P2,000,000

Alowance for doubtful accounts P100,000

Additional information for the current year:

Cash sales of the entity amount to P800,000 and represent 10% of gross sales.

Ninety percent of the credit sales customers not take advantage of the 6/10, n /30 terms.

Customers who did not take advantage of the discount paid P5,940,000.

It is expected that cash discounts of P10,000 will be taken on accounts receivable outstanding at
December 31, 2016.

Sales returns amounted to P80,000. All returns were from charge sales.

During the year accounts totaling P60,000 were written off as uncollectible.

Recoveries during the year amounted to P10,000. This amount is not included in the collections.

The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the
outstanding accounts receivable at year-end.

Required: compute the net realizable value of accounts receivable on December 31, 2016

6. Relentless Company reported the following balances January 1, 2016:

Accounts receivable P600,000

Allowance for doubtful accounts P25,000

The following transactions took place in the current year

Sales cash and credit P3,070,000

Cash received from credit customers P2,445,000

Cash received from credit customers who took advantage of the 3/10, n /30 credit terms (included in
the above collection) P1,455,000

Accounts receivable written off as worthless P20,000

Cash received from cash customers P470,000

Credit memo for sales return and allowances issued to credit custonmers P55,000
Cash refunds to cash customers P10,000

Recoveries of accounts written off, included in above collections P5,000

Required: Determine the net realizable value of accounts receivable on December 31, 2016 if the entity
provides for doubtful accounts equal to 2% of net credit sales.

7. Mammoth Company reported the following balances on January1, 2016.

Accounts receivable P1,500,000

Alowance for doubtful accounts P90,000

During the current year, the entity recorded credit sales of P9,000,000 and interim provision for
doubtful accounts at 2% of credit sales

Accounts of P100,000 were written off during the year but accounts of P20,000 were subsequently
recovered.

The balance of accounts receivable on December 31, 2016 amounted to. P2,000,000 and aged as
follows:

Classification Balance Estimated uncollectible

1 to 60 days 1,000,000 1%

61 to 120 days 400,000 5%

121 to 180 days 300,000 10%

181 to 360 days 200,000 25%

More than one year 100,000

Based on the review of collectibility of the account balances, additional receivables of P40,000 under the
classification "more than one year" are to be written off on December 31, 2016.

Required: adjusting entry to correct the the recorded doubtful accounts; determine the net realizable
value of accounts receivable on December 31, 2016

8. On January 1, 2016, Grumpy Company reported accounts receivable of P250,000 and allowance for
doubtful accounts P20,000

The following data are available:

Year Credit sales Written off Recoveries

2013 1,100,000 26,000 2,000

2014 1,200,000 29,000 3,000

2015 1,500,000 30,000 4,000

2016 3,000,000 40,000 5,000

Doubtful accounts are provided for as a percentage of credit sales. The accountant calculates the
percentage annually by using the experience of the three years prior to the current year.

The formula is accounts written off less recoveries expressed as a percentage of the credit sales for the
period. Cash receipts during the current year from credit sales including recoveries amounted to
P2,615,000.

Required: net realizable value of accounts receivable on December 31, 2016

9. Mathematics company reported the following

Beginning accounts receivable P600,000

Beginning AFDA P30,000

Sales P5,000,000

Collection P4,360,000

Among the cash collections was' the recovery of P10,000 receivable from a customer whose account had
been written off as worthless in the pricr year.

During the current year, it was necessary to write off uncollectible customers accounts of P50,000.

On December 1, 2016, a customer settled an account by issuing a 12%, six-month note for P200,000.

On December 31, 2016, the accounts receivable included P300,000 of past due accounts. After careful
study, the management estimated that the probable loss on past due accounts was 20% and that in
addition, 5% of the current accounts may prove uncollectible.

Required: net realizable value of accounts receivable on December 31, 2016; determine the doubtful
accounts expense

10. From inception of operations, Savvy Company carried no allowance for doubtful accounts.
Uncollectible receivables were expensed as written off and recoveries were credited to income as
collected. During the current year, management recognized that the accounting policy with respect to
doubtful accounts was not correct, and determined that an alowance for dobtful account was necessary.
A policy was established to maintain an allowance for doubtful accounts based on historical bad debt
loss percentage applied to year-end accounts receivable. The historical bad debt loss percentage is to be
recomputed each year based on all available past years up to a maximum of five years. Information for
five years is as follows:

Year Credit sales Written off Recovery

2012 1,500,00 15,000 0

2013 2,000,000 40,000 2,000

2014 3,000,000 50,000 3,000

2015 3,300,000 65,000 5,000

2016 4,000,000 88,000 10,000

Accounts receivable balances were P1,250,000 and P2,000,000 on January 1, 2016 and December 31,
2016, respectively.

Required: journal entry to set up AFDA on January1, 2016; compute net realizable value of AR on
December 31, 2016

11. Walkaway Company started business at the beginning current year. The entity established an
allowance for bad debts estimated at 5% of credit sales. During the year, the entity had written off
P25,000 of uncollectible accounts.

Analysis of the accounts showed that merchandise purchased in the current year amounted to
P4,500,000 and ending merchandise inventory was P750,000. Goods were sold at 40% above cost. Sales
on account amounted to 80% of total sales. Total collections from customers, excluding cash sales
amounted to P3,000,000.

Required: compute cost of goods sold; balance of AR at year end; balance of AFDA end

12. From inception of operatione, Compreheneive Company provided for uncollectible accounts
expense under allowance method using the percentage of sales method. No year-end adjustments to
the allowance account were made.

The balance in the allowance for doubtful accounts was P1,000,000 on January 1, 2016. During the
current year, credit sales totaled P20,000,000 interim provisions for doubtful accounts were made at 2%
of credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written otf
amounted to P50,000.

An aging of accounts receivable was made for the first time on December 31, 2016.
Aging Balance Uncollectible

0 to 60 6,000,000 10%

61 to 180 2,000,000 20%

181 to 360 1,500,000 30%

Over 360 500,000 50%

Based on the review of collectibility of the account balances in the "over 360 days" aging category,
additional accounts totaling P100,000 are to be written off on December 31, 2016. Effective with the
year ended December 31, 2016, the entity adopted a new accounting method for estimating the
allowance for doubtful accounts at the amount indicated by the year-end aging of accounts receivable.

Required: balance of AFDA at year end before adjustment; required AFDA at year end; doubtful account
expense for current year; year end adjustment of AFDA at year end; NRV of AR

13. Celaica Company reported the following accounts receivahle at year-end:

Trisha Company P800,000

Jerard Company P2,000,000

Marc Company. P 1,500,000

Francis Company. P1,000,000

All other accounts receivable. P5,000,000

The entity determined that Trisha Company receivable is impaired by P500,000 and Francis Company
receivable is totally impaired. The other accounts receivable from Jerard Company and Marc Company
are not considered impaired. The entity also determined that a composite rate of 4% is appropriate to
measure impairment on all other accounts receivable.

Required: total impairment loss of account receivable