Substantial ic yes eee, 2 Wihien ot ene ‘otcwing PAS JER! 8 Tons and reconebioe in ts, MAY be Sze Tecenabics: nc in accordance with 2." Those tat the ora inthe near tern b. Those "that the ent ‘intends to sll immediately or Upon, na recopriton cen St ra designates a8 avababie Yor None of tre above 3. In accordance with 2°RS 9, loans and receva be measured at amort seg tomy shinai 2.//The asset Is held within’ / objective is to. hata contractual cash Now. The contract! terms of the financial asset gWve fse on specified dates to cash flows that ae soely Payments of principal and interest on the princi amount outstanding. & Botha and b. © 4. Either orb. usiness model whose assets In order to. collect 4. Which statement receivables? 2. An entity shali recognize loans and receivables on Its statement of financial position when, and only when, the entity becomes a party to the contractual provisions of the instrument. . Loans and receivables are initially recognized at its fair value plus transaction costs that are directly attributable to the acquisition of the financial Incorrect regarding toans and nal SL ars e eatin sean Wining tet ENC. . as on “RE Recetvable Cha REV ® ew be Hee EW SCAMPOICABARLES/ Sota PISCUSSION PROBLeme “eae tices, x, om a acne ve The flowing are normaly inc COCR ey ct we i am ‘Avance to subsidiaries rd a © ‘Recenates from sae ohne er than invertase peel Dividends and inert recevabe New Corp has the fetlonin receivable a the end oft Accounts receivable Allowance for doubtful accounts Allowance for sales discounts 8 data relating to accounts current year 1,880,000 94,000 “s.000 Alonance fer sales rene : Atowanee for eit “Sooo What's the net realizable value of the accu receivable? bd of 2. 2,708,000 . P1,759000) B. i,g80,000 &. i7szo00 10. On June 9, Seller Corp. sold merchandise with a ist rice of PS,000 to Buyer on account, Seller allowed, trade discounts of 20% and 20%. Crest terms were 2/15, n/40 and the sale was made FOB shipping point. ‘Seller prepaid P200 of delivery costs for Buyer a5 an ‘accommodation. On lune 25, Seller recelved from, Buyer a remittance in full payment amounting to 2. P2744 P2984 a b, P2,9405 d. P3,000 c. Loans and receivables are subsequently measured at amortized cost using the effective interest method. P1.231€ ae lof4 ‘www. prtc.com.pha 2a a eaten | Pestctes om ‘lon:for Doub neents se olecion st accounts 3008600 from an (reat sales, yeor-cnaed Decerber 21 The allowance for doubt sccounts ona Feammer || Ragga ae +11. Trade discounts are sree : a ETRE, caer ty MOEN ~ a tans of computing a price. | Eee : b. Used to avoid frequent chen - /oid frequent changes in catalogues. ‘Traattional Hethods of Kesaunting for Samara, i metscmte tow juantities purchased, ae el 4. All of the above. Write-ott | Allowance, 1 aga test Lies prmeerasg: [| | id be reported as F 2. A deduction from sales in the income statement. + b. An item of “other income and expense” in the income statement. A” deduction trom accounts receivable in determining the net realizable value of accounts receivable. Sales discounts forfeited in the cost of goods sold section of the Income statement. 4. Allowance method 13, The Pacifier Company uses the net price method of In one of its Profitor + of sales sold FOCUS: Doubtful accounts expense accounting for cash discounts. transactions on December 15, merchandise with a list price of P500,000 to a client who was given a trade discount of 20% and 15%. Credit’ terms were 2/10, 1/30. The goods were shipped FOB destinativn, feight collec. On December <9 of accounts receivable 20, the client returned damaged goods originally bled. Aging x ges pald by the BYE Eacys; allowance for doubtful accounts at P60,000. Total freight char Pacifier P1.23 inted to P7,500.ne. Steel mia ec Pe Bona xe mae DRE enemy sp te cae ee cee Sr ae een yy eeten ee Bh ethos Bietete, ate wears Salt ar Pe re ery zzning 8. ae cena 0 + “MB Bec ERM odes tog gn 22m rest sancny nape e Memoirs ws oe Et ran any ne F RASEEe te gc ea es Bee Decrease 2 Net income” YPeolect ‘Cust = ana BeSeien tat cee’ Teme ay SSO, GRA Ba, Ses piel een TS «Bi, Se 7 ue aon ie "ae 4 company ue y om BERS j ole SE 8 Moe meg puter tonaan ke Be i saya the cece A SRE enna, sooo Ss 1 coe olor aa Pe ie = Bae conn, estes ~ oS cit lu me t.g9 22 Soa 08 BBB ae Scene The eae oa a es on we ben en Noack peroons rte icon sca a ccc tae ry 1 2017, the balance of account coor com d sere Bufo ccthpany wos 500,000 a the ED jomancs for ub zona on gue date Wok 7 100. Tee "9 data were gathered: have anes Tre Alonance J kos ned 2 est zore gala AMES Minaee Tohece’ Gt P14,600° on Becenber 33, Sot7, Soo 14,000,20¢|40m aoo.o0a)"— "Sg.ono|xe _adustment. aunt 2016 46000,000” 30,001") 0}00."” the ating numa ery to att ne owen ao0,009 | 1,200/000 |. 148/000 dual eras me of Susie 057 wh ook conn ae ese eg a epee oust Tie povided for as percentage of 3. P2798 epna7es § shew ag, Cred saln the accouttart clas te ereage —B, F3B788 &. Pit annually by using the experience of the three years me = ports the current years "How mich should be SOLUTIO Feported as 2017 devbtut accounts expense? "750,000 "730,000 ee | 8! P012/500 &. pa7s.000 @- a0 days | r2czaoo | sm | _rasze 21. John Corp. nas the following data relating to accounts 7 receivable for the year ended December 31, 2017: 2G Sr 1770 | 1s 2@\ sevens ceva aruery 2017 ea80000, ,, | s1-0de | 20a | ae | sen ‘Alowance for doubtil accounts, 1} "20 6a = Ln “omuary 2017 ae si-29en | 17600 | 19s] ni Sales during the year, aon account, over 170 cavs |_ 5.600 | som | 7800] terms 2/10, 1/15, /69 2,400,000 Cash received from customers during Pre ress the year 2,560,000 ‘Accounts written off dunng the year 17,600 23, Badoc Corporation's books discosed tre folonng ‘An analysis of cash raceived from customers during the Yeor revealed. that Pi,411,200 was received from Yisromers availing the 10-day discount period, 792,000 from customers avaling the 15-day discount period, P4,600. represented recovery of accounts furtten-off, and the balance was Customers paying beyond the discount period. Information for the current year: 1500008 Naconenes en. Nek ash Se at pesining of vest 200,500 pecans Recenabe at en Y=" ‘aa ado’ ccounts receivable te os 7s umes ceases B.S umes 33 «now do the DIY l= Pi.2316 aaa ‘www.prtc.com.phEL PROFESS, = SERVICES, tye, ‘Account receivable ~ ‘Accounts receivable ‘officers Debit balances ~ ‘ creditors, ’ Postdated checks from customers v Subscriptions recei.abie Accounts payable for merchandise Credit balances in eustomers" accounts (Cash received in advence from customers for ‘o0ds net yet shignes Expected bad devte + P7,800,000 500,000 300,000 400,000 ‘800,000, 4,500,000, 200,000 100,000 150,000 After further analysis of the aged accounts recelvabe, You determined "tat the “allowance for couse accounts should be(P200,000.) What is the conert total of current net receivables? ‘a. PB,950,000 « 8,600,000 b. 8,800,000 » 6. P8;850,000, 3 Tyson, Inc. reported the following balances (after adjustment) at the end of 2017 and 2016. FUE ITRLOLIESOCS 105,01 102,000 uring 2017, tyson wrote off customer accounts totating P3200 and collected ps on scours wren oft in previous year Tyson's owbt accounts expense forthe yoo ening December 3, 217 8 Total accounts receivable (Net accounts receiveble he jp P2E.000} ee a, A credit allom. for coubtl accounts of B3,898, 98,5 Ba Seonte PO-T-YOURSELE (01) DRILL — lowing "Ye receivable MEIN 4. Cabugne con team hee Stl St caeny ten see on anay 4 a 1 SER grt ay. Sree ewe tye met ernam ey etme ares, Fe tt ci Se Sa Mercia itty yy“ Sow fm Ge pane ore Beer asi Sse Jean Sal es SSE Sidon se comme fart ar Ae Taher Fy 30 = od sta kot ate, SE nang fa 5 mee “Seta : st meee wt Sepp, ingen xe we"ndeacsna icc bree anew seine et cee ore i festimoceete_ doubt by oping hs accounts verevaia rs be 8 Docember 31,2007 amu PrrzeH 00 ‘s1's00 383,600, isons sop saano Paaies d's uncollectbve accounts oat § years fre summarzed inthe Dont Let Me Down, experience forthe folowing scelea Avt nat et Oe a otk ole Magione 35 Meo So Tis le Dee a1 arn 201g riase7s0 Om ton “HBA One 3o1s “100900 Om ios lin aise Some 2014 “ea7so0 am isn xe ae 213 1,224,000 4% Tm ote om 201211855500 05 om Se Som Soa ‘The balance of the allowance for doubtful accouns at December 31, 2017 (before adjustment) is P136,951. ‘The necessary adjusting journal entry to adjust the ‘allowance for doubtful accounts a= ef December Si, 2017 would incu: ®. No adjusting Journal entry ie necessary. b._ A debit to retained earnings of 913,094, ‘AdeDI to doubtful secounts expense P40, 644, : eP3,000, 2316-9 pesa00 1. P3,900* po bi va, j em ! vem 4 : PI.2316 a) em >