Harem Company revealed a balance of P8,200,000 in the accounts receivable control at year-end. An analysis of the accounts receivable showed the following: Accounts known to be worthless Advance payments to creditors on purchase orders Advances to affiliated entities Customers' accounts reporting credit balances arising from sales return Interest receivable on bonds Trade accounts receivable Subscription receivable due in 30 days Trade installments receivable due 1 - 18 months, including unearned finance charge of P50,000 100,000 400,000 1,000,000 (600,000) a. 4,650,000 b. 4,700,000 c. 4,150,000 d. 4,050,000 400,000 3,500,000 2,200,000 850,000 Trade accounts receivable from officers, due currently Trade accounts on which postdated checks are held and no entries were made on receipt of checks Total 10. What amount should be reported as trade accounts receivable at year-end? 150,000 200,000 8,200,000

Harem Company revealed a balance of P8,200,000 in the accounts receivable control at year-end. An analysis of the accounts receivable showed the following: Accounts known to be worthless Advance payments to creditors on purchase orders Advances to affiliated entities Customers' accounts reporting credit balances arising from sales return Interest receivable on bonds Trade accounts receivable Subscription receivable due in 30 days Trade installments receivable due 1 - 18 months, including unearned finance charge of P50,000 100,000 400,000 1,000,000 (600,000) a. 4,650,000 b. 4,700,000 c. 4,150,000 d. 4,050,000 400,000 3,500,000 2,200,000 850,000 Trade accounts receivable from officers, due currently Trade accounts on which postdated checks are held and no entries were made on receipt of checks Total 10. What amount should be reported as trade accounts receivable at year-end? 150,000 200,000 8,200,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
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Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
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 recivable 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 asigned accounts is P500,000) 1,500,000 Trade installments receivable due in 1-18 months, including unearned finance charge of P50,000 850,000 Trade accounts receivable from officers, due currently 150,000 Trade…
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The following information has been extracted from the annual reports of Lilydale Ltd and Monbulk Ltd. Lilydale Ltd Monbulk Ltd $2 950 300 17 100 Sales (net credit) revenue for year Allowance for Doubtful Debts, 1/7/18 Allowance for Doubtful Debts, 30/6/19 Accounts receivable (gross) 1/7/18 Accounts receivable (gross) 30/6/19 $2 204 300 27 100 19780 28 100 722 650 368 000 485 800 384 200 (a) Calculate the receivables turnover ratio and average collection period for both companies. Comment on the difference in their collection experiences. (b) Compare the success or otherwise of their cash collection policies, given that the average receivables turnover for the industry in which the companies operated is 7. Credit terms for both companies are 2/10, n/30.