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Activity 1 Receivables
Activity 1 Receivables
Activity 1 Receivables
Activity 1
Receivables
PROBLEM 1
The Trade receivables and others of Ithaca Company as of December 31, 2024 consist of the
following items:
The amount of P2,845,000 due from customers was the remaining balance after deducting
accounts with credit balances of P40,000.
Based on the foregoing data, determine the correct balance of “Trade and other receivables” to
be presented in the current portion of the statement of financial position as of December 31,
2024. (Please present proper solution)
PROBLEM 2
The following are the transactions of Scarsdale Merchandising for the month of December 2023:
December 15 Sold goods to Rye Company under the following terms: P350,000 list price,
TD 5%; 2/10, n/30, FOB shipping point, freight prepaid for P15,000.
18 Received from Rye Company unacceptable merchandise that had a list price
of P30,000.
23 Received a check from Rye Company for the full payment of December 15
and December 18 transactions.
28 Sold merchandise to Woodbury Company under the following terms:
P480,000 invoice price, 2/10, n/30. FOB destination; freight collect for
P25,000 (use allowance method for the freight)
30 The goods shipped on Dec 28 were received by Woodbury, however, based
on the inspection of goods a total of P25,000 will be returned in the following
week because of wrong specifications. (Use allowance method for the return)
31 Woodbury confirmed that they will make a full payment of the net receivable
from them on January 5, 2024. (Use allowance method for the discount)
Required: Prepare all the necessary journal entries for the above transactions. Please observe
proper journal entries.
Note: Please submit your handwritten output to this activity on Tuesday, March 12, 2024 during
our class. Thanks.