PROBLEM 11-5

On January 1, 2015, Template Company showed the following account balances:

accounts receivable
allowance for doubtful accounts
the following summary transactions occurred during the current year:
1. sales on account, 2/30, n/30
2. collections from customers within the discount period
3. collection from customers beyond the discount period
4. accounts receivable written off as worthless
5. recovery of accounts previously written off not included in the above collections
6. credit memo for sales return

Required:

a. Prepare journal entries pertaining to accounts receivable

b. Prepare the adjustment for doubtful accounts on December 31, 2015 if the
entity uses the percentage of accounts receivable method consistently
c. what is the net realizable value of accounts receivable on Dec 31, 2015
Problem 11-7
Relentless company reported the following balances on January 1, 2015:

Accounts receivable
Allowance for doubtful accounts

The following transactions took place in the current year.

1. sales– cash and credit

2. cash received from credit customers
3. cash received from credit customers who took advantage of the 3/10, n/30
credit terms (included in No.2
4. accounts receivable written off as worthless
5. cash received from cash customers
6. Credit memo for sales return and allowances issued to credit customers
7. cash refunds to Required:
cash customers
8. Recoveries of accounts written off, not included in above collections
a. Prepare journal entries to record the transactions.
b. Prepare the adjustment for doubtful accounts if the
entity provides for doubtful accounts equal to 2% of
net credit sales
c. Determine the net realizable value of accounts
receivable on December 31, 2015
Problem 11-20
Aghast company sold goods to wholesalers on terms 2/15, net 30. the entity
had no cash sales but 50% of the customers took advantage of the discount.
An analysis of the accounts receivable considered collectible at year end
revealed the following:

0– days
16—30 days
31—60 days
Over 60 days

What amount should be reported as allowance for sales discount?

a. 200,000
b. 100,000
c. 83,000
d. 50,000
Problem 11-21
At year end, ludicrous company reported accounts receivable of P6,000,000
and allowance for doubtful accounts of P300,000 before year-end adjustment:
Outstanding accounts receivable probability of collection

The accounts which have been outstanding over 75 days and have zero
probability of
Two Content Layout with SmartArt
• First bullet point here

Group A
• Second bullet point here
• Third bullet point here

Group C Group B
Add a Slide Title - 1
Add a Slide Title - 2
Add a Slide Title - 3
Add a Slide
Title - 4
 Click icon to add picture

Add a Slide
Title - 5
 Click icon to add picture

Add a Slide
Title - 6