Beruflich Dokumente
Kultur Dokumente
Receivables (Part 1)
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5. A
Solution:
Allowance for bad debts
10,800 Jan. 1
Bad debts expense (450K x
Write-offs 18,000 13,500 3%)
Dec. 31 6,300
2
2. A (93,000 – 2,000 + 3,000) = 94,000
6. A
Allowance for doubtful accounts
128,000 beg.
Write-offs 88,000 80,000 Bad debts expense (squeeze)
- Recoveries
a
end. 120,000
8. C
Allowance for doubtful
accounts
Dec. 31 (unadjusted) 2,000
Write-offs - 60,000 Bad debts (4M x 1.5%)
- Recoveries
end. 58,000
9. D
Allowance for doubtful
accounts
1,500 beg. (96K - 94.5K)
Write-offs 3,200 3,900 Bad debts (squeeze)
800 Recoveries
end. (105K - 102K) 3,000
10. B
Accounts
receivable
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beg. 50,000
Sales on account 620,000 578,000 Collections, including recoveries
Recoveries 3,000 20,000 Write-offs
75,000 end.
11. A
Accounts receivable
beg. 40,000
Sales on account 520,000 487,000 Collections, including recoveries
Recoveries 2,000 10,000 Write-offs
65,000 end.
12. D
Accounts receivable
beg. 45,000
Sales on account 550,000 525,500 Collections, including recoveries
Recoveries 2,500 12,000 Write-offs
60,000 end.
13. B
Allowance for doubtful accounts
- beg.
Write-offs 40,000 90,000 Bad debts expense
- Recoveries
end. 50,000
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19. B (148,000 + 70,000 + 60,000 + 2,000 – 160,000) = 120,000
3. Solutions:
Requirement (a): Traditional GAAP
Gross method Net method
1. Sale on account
Accounts receivable 90,000 Accounts receivable 87,300
Sales 90,000 Sales 87,300
1. Sale on account
Accounts receivable 87,840
Revenue 87,840
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Accounts receivable 69,840
4. Solution:
Requirement (a):
(a)
Bad debt expense 25,000
Allowance for doubtful accounts 25,000
(b)
Allowance for doubtful accounts 5,000
Accounts receivable 5,000
(c)
Accounts receivable 3,000
Allowance for doubtful accounts 3,000
Cash on hand 3,000
Accounts receivable 3,000
Requirement (b):
Allowance for doubtful accounts
10,000 beg.
Write-offs 5,000 25,000 Bad debts expense
3,000 Recoveries
end. 33,000
5. Solution:
Requirement (a):
(a)
Accounts receivable 250,000
Sales 250,000
(b)
Cash on hand 220,000
Accounts receivable 220,000
(c)
Bad debt expense 30,000
Allowance for doubtful accounts 30,000
(d)
Allowance for doubtful accounts 15,000
Accounts receivable 15,000
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(e)
Accounts receivable 8,000
Allowance for doubtful accounts 8,000
Cash on hand 8,000
Accounts receivable 8,000
Requirement (b):
6. Solutions:
Requirement (a):
7
- Recoveries
end. 8,000a
Requirement (b):
7. Solutions:
Requirement (a):
8
Bad debt expense 53,000
Allowance for bad debts 53,000
Requirement (b):
50,000 (see computations above)
Requirement (c):
Gross accounts receivable (500K + 200K + 100K) 800,000
Less: Allowance for bad debts (50,000)
Accounts receivable, net – end. 750,000
(2)
Doubtful Accounts Expense ................... 5,374.50
Allowance for Doubtful Accounts ........... 5,374.50
2. Solutions:
(1)
Doubtful Accounts Expense ................... 35,700
Allowance for Doubtful Accounts ........... 35,700
[(3% x ₱590,000) + ₱18,000]
(2)
Doubtful Accounts Expense ................... 32,025
Allowance for Doubtful Accounts ........... 32,025
[1.5% (₱2,180,000 - ₱18,000 - ₱27,000)]
(3)
Doubtful Accounts Expense ................... 39,400
Allowance for Doubtful Accounts ........... 39,400
(₱21,400 + ₱18,000)
3. Solutions:
(1) Bad Debt Expense 4,670
Allowance for Doubtful Accounts 4,670
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Gross receivables ₱90,000
Rate 6%
Total allowance needed 5,400
Present allowance (730)
Adjustment needed ₱ 4,670
Sales ₱360,000
Sales returns and allowances 8,000
Net sales 352,000
Rate 2%
Bad debt expense ₱ 7,040
4. Solution:
(1)
Harris Corporation
Analysis of Changes in the Allowance for Doubtful Accounts
For the Year Ended December 31, 2002
Schedule 1
Computation of Allowance for Doubtful Accounts
at December 31, 2002
Doubtful
Aging Category Balance Percent Accounts
November-December 2002 ₱2,280,000 2% ₱ 45,600
July-October 2002 1,200,000 15% 180,000
January-June 2002 800,000 25% 200,000
Prior to January 1, 2002 140,000 * 80% 112,000
₱4,420,000 ₱537,600
* ₱260,000 - ₱120,000
(2)
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Doubtful Accounts Expense .................... 187,600
Allowance for Doubtful Accounts ............ 187,600
To increase the allowance for doubtful
accounts at December 31, 2002, resulting
from a change in accounting estimate.
5. Solution:
Requirement (a):
Requirement (b):
Allowance for doubtful
accounts
45,000 Jan. 1
Write-offs 50,000 - Bad debts expense
3,000 Recoveries
2,000 Dec. 31 (Dr.) - unadjusted
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