ACTIVITY

1. The december 31,2017, statement of financial position of the UPAT company included the following
information:

 accounts receivable 672,000

 allowance for credit loss 42,300
 notes receivable 65,400
 the company is contingently liable for
 discounted notes receivable of 114,000

During the year ending December 31,2018, the following transactions occurred:

1. sales on credit 2,623,800

2. collections of accoounts receivable 2,523,000
3. accounts receivable written off as uncollectible 41,400
4. notes receivable collected 87,000
5. customer notes receved in payment of accounts receivable 216,000
6. notes receivable discounted that were paid at maturity 108,000
7. notes receivable discounted that were defulted, including interest
of 60 and a 15 fee. This amount is expected to be collected in 2019 6,075
8. proceeds from customer notes discounted with recourse
(principal 135,000,accrued interest,600) 135,225
9. collections on accounts previously written off 1,500
10. sals returns and allowances(credit sales) 6,000
11. increase in allowance of credit loss 39,357

Determine the December 31,2018 balances of:

a. accounts receivable
b. allowance for credit loss
c. notes receivable
d. notes receivable discounted

2. Calachuchi corp accounts receivable subsidiary ledger shows the following informatiion:

CUSTOMER ACCOUNT BALANCE invoice

DECEMBER 31,2018 DATE AMOUNT
Aruy Inc. 35,180 12/06/18 14,000
11/29/18 21,180
Naku Co. 20, 920 9/27/18 12,000
8/20/18 8,920
Syak Corp 30,600 12/08/18 20,000
10/25/18 10,600
Trip Co. 45,140 11/17/18 23,140
10/09/18 22,000
Uy Co. 31,600 12/12/18 19,200
12/02/18 12,400
 Xak Corp 17,400 9/12/18 17,400

The lifetime experienced credit loss rates below are baed on collection experience, adjusted for forward
looking estimates

AGE OF ACCOUNTS RATE

0-30 days 1%
31-60 1.5%
61-90 3%
91-120 10%
Over 120 50%

a. Company’s accounts receivable under 61 -90 days

b. Company’s accounts receivable under 91-120 days
c. The allowance credit loss to be reported on the statement of financial position at December
31,2018
d. Entry should be made on December 31,2018. To adjust the allowance credit loss?