Problem 1: CAGULDA

List Price 5,000.00

Trade Discount 30% 1,500.00
3,500.00
Trade Discount 20% 700.00
Invoice Price 2,800.00
Prepaid Freight 200.00
Collection 3,000.00
*Not subject to discount (16 days)
*Shipping Point, so the buyer is the owner of the goods upon shipment
*Since the buyer is the owner of the goods, he should shoulder shipping cost
*Since the seller (CAGULADA) paid for thee shipping, buyer should pay CAGULADA
*Thus, the 200 will be added to the receivable from buyer

Problem 2: CAGALAWAN
Sales 15,000,000.00
Sales Returns and Allowance 700,000.00
Net Sales 14,300,000.00
Bad Debts Expense % 1.50%
Bad Debts Expense 214,500.00

Problem 3: DELA CRUZ

Accounts Receivable 17,500,000.00
Allowance for Doubtful Accounts, Adj 1,800,000.00
Net Realizable Value of Accounts Receivable 15,700,000.00

Problem 4: FELSIAN
Allowance for Doubtful Accounts Debit Credit
Beginning 170,000.00
Credit Sales 21,000,000.00
Provision for D 3% 630,000.00
Collection of Written Off Accounts 80,000.00
Accounts Written Off in 2019 300,000.00 _____________
Totals 300,000.00 880,000.00
Ending 580,000.00

Problem 5: LABIS
Accounts Receivable Debit Credit
Beginning 1,920,000.00
Collection of AR 6,240,000.00
Inventory Begin 2,880,000.00
Purchases 4,800,000.00
TGAS 7,680,000.00
Inventory Endin 2,640,000.00
COGS 5,040,000.00
GP 2,160,000.00
Total Sales 7,200,000.00
Cash Sales 1,200,000.00
Credit Sales 6,000,000.00
Total 7,920,000.00 6,240,000.00
Ending 1,680,000.00

PROBLEM 6: SEBLIAN
Trade Accounts Receivable (Current) 3,440,000.00
Past Due Trade Accounts 640,000.00
NR dishonored 240,000.00
Sold Goods on Consignment 160,000.00
Cost Ratio 90%
AR from consignee 144,000.00
Trade Accounts Receivable 4,464,000.00
AR from consignee 144,000.00
Trade receivables (net of due from consignee) 4,320,000.00
Allowance 5%
Allowance for Doubtful Accounts 12/31/19 216,000.00
Written Off 128,000.00
Unadjusted ADA (80,000.00)
Doubtful Accounts Expense 264,000.00

Problem 7: NAPARAN
Accounts Receivable Debit Credit
Beginning 674,000.00
Sales 3,000,000.00
Total Collection 3,200,000.00
Collection 1,764,000.00 1,764,000.00
Discount 2% 36,000.00
Collection 990,000.00 990,000.00
Discount 1% 10,000.00
Recovery o 6,000.00 6,000.00 6,000.00
Collection 440,000.00 440,000.00
Written Off Accounts 22,000.00
Sales Returns 12,000.00
Total 3,680,000.00 3,280,000.00
Ending 400,000.00

Allowance for Uncollectible Accounts Debit Credit

Beginning 24,000.00
Sales 3,000,000.00
Provision Rate 1%
Provision 30,000.00
Written Off Accounts 22,000.00
Recovery of Accounts Written Off 6,000.00
Total 22,000.00 60,000.00
Ending 38,000.00

Accounts Receivable End 400,000.00

Allowance for Uncollectible Accounts End 38,000.00
Net Realizable Value 362,000.00

Problem 8: SINAGDA
Net Credit Sales 1,500,000.00
AR Beginning 200,000.00
AR Ending 400,000.00
Average Ar 300,000.00
RTO 5.00

Problem 9: VILLOTE
AR ADA DAE
Beginning 3,600,000.00 72,000.00
Sales 38,400,000.00
Collection (31,360,000.00)
Sales Discounts (640,000.00)
Worthless Acco (160,000.00) (160,000.00)
Recovery of Wri 40,000.00 40,000.00
(40,000.00)
Provision for DA 184,000.00 184,000.00
Collection from (1,200,000.00)
Total 8,640,000.00 136,000.00 184,000.00

Problem 10: P 0-30 31-60 61-90 91-120

ABC 56,000.00 84,720.00
DEF 48,000.00
GHI 80,000.00 42,400.00
JKL 92,560.00 88,000.00
MNO 126,400.00
PQR 69,600.00
Total 262,400.00 177,280.00 130,400.00 117,600.00
ADA % 1% 1.50% 3% 10%
ADA, ending 2,624.00 2,659.20 3,912.00 11,760.00
Total ADA, endi 38,795.20
ADA, unadjuste 14,000.00
Provision 24,795.20

AR end 723,360.00
ADA end 38,795.20
AR net 684,564.80

Problem 11: FOURTH YEAR

Credit Sales Write Off Recovery Writeoff (net)
2015 1,110,000.00 26,000.00 2,150.00 23,850.00
2016 1,225,000.00 29,500.00 3,750.00 25,750.00
2017 1,465,000.00 30,000.00 3,600.00 26,400.00
Total 3,800,000.00 76,000.00
Write Off (net) 76,000.00
Credit Sales Tot 3,800,000.00
Doubtful Accoun 2%
Credit Sales (20 1,500,000.00
Doubtful Accou 30,000.00

AR, beg 209,000.00

Credit Sales 1,500,000.00
Collection (1,380,200.00)
Write Off (31,000.00)
Recovery 4,200.00
Receipt of Reco (4,200.00)
AR, end 297,800.00

ADA,beg 7,600.00
DAE 30,000.00
Recovery 4,200.00
Write Off (31,000.00)
ADA, end 10,800.00

AR, end 297,800.00

ADA, end 10,800.00
NRV 287,000.00

Problem 12: GRAD WAITING

Accounts Receivable Notes Payable
Accounts Receivable Assigned 5,000,000.00
Loans attched to AR Assigned 4,500,000.00 *Service Fee charged as exp
Collection from 2,800,000.00 (2,800,000.00)
Interest on Loan 45,000.00 (2,755,000.00)
Discount from Collection (200,000.00)
Balance 12/31/19 2,000,000.00 1,745,000.00
Liability portion of AR 1,745,000.00
Equity portion of AR 255,000.00

Customer's Note 600,000.00

Accrued Interest 30,000.00
Maturity Value 630,000.00
Discount 25,200.00
Proceeds 604,800.00
Bad Debts Expense
Allowance for Bad Debts
To record estimated uncollectible accounts
Allowance for Bad Debts
Accounts Receivable
To write off uncollectible accounts

Accounts Receivable
Allowance for Bad Debts
To record recovery of previously written accounts

Cash
Accounts Receivable
To record collection of previously written accounts
>120

35,680.00

35,680.00
50%
17,840.00
vice Fee charged as exp
Problem 1: MK CAGULADA
List Price 500,000.00
Trade Discount 20% 100,000.00
400,000.00
Trade Discount 15% 60,000.00
Invoice Price 340,000.00
Freight Charges 7,500.00
Accounts Receivable 332,500.00
Sales Returns 60,000.00
Sales Discounts 2% 5,600.00 65,600.00
Net Receivable 266,900.00

Problem 2: DELA CRUZ

Accounts Receievable 2,700,000.00
Provision for Uncollectible Accounts % 2.50%
Provision for Uncollectible Accounts 67,500.00

ALLOWANCE METHOD
Uncollectible Accounts Expense 67,500.00
Estimated Uncollectible Accounts 67,500.00
To record provision for uncolletible accounts.

DIRECT WRITE OFF METHOD

Uncollectible Accounts Expense 67,500.00
Accounts Receivable 67,500.00
To record write off of uncolletible accounts.

Problem 3: NAPARAN
Net Sales 2,600,000.00
RTO 6.5
Average Receivables 400,000.00
x2 800,000.00
Accounts Receivable, Beginning (470,000.00)
Accounts Receivable, Ending 330,000.00

Problem 4: VILLOTE
Trade Accounts Receivable-assigned 750,000.00
Trade Receivable from Officers 45,000.00
Other Trade Accounts Receivable- Unassigned 1,500,000.00
Trade Installment Receivables 600,000.00
Trade accounts on PDC 150,000.00
Trade Accounts Receivable 3,045,000.00
Subscription Receivables 1,650,000.00
Advance payment to creditors 300,000.00
Interest Receivable-Bonds 300,000.00
Written Off Accounts (75,000.00)
Net Current Trade and Other Receivables 5,220,000.00
Problem 5: SEBLIAN
Accounts Receivable Debit Credit
Beginning 480,000.00
Sales 2,400,000.00
Total Collection 2,560,000.00
Collectio 1,411,200.00 1,411,200.00
Discount 2% 28,800.00
Collectio 792,000.00 792,000.00
Discount 1% 8,000.00
Recovery 4,800.00 4,800.00 4,800.00
Collectio 352,000.00 352,000.00
Written Off Accounts 17,600.00
Total 2,884,800.00 2,614,400.00
Ending 270,400.00

Accounts Receivable, Beginning 480,000.00

ADA Beginning 19,200.00
ADA % 2018 4.00%
Increase in % 1.25
ADA % 2019 5.00%
Accounts Receivable, Ending 270,400.00
ADA Ending 13,520.00
Write Off 17,600.00
Recovery (4,800.00)
ADA Beginning (19,200.00)
Doubtful Accounts Expense 7,120.00

Problem 7: CJ LABIS

Allowance for Doubtful Accounts 20,000.00

Accounts Receivable 20,000.00
To record write off of DDD's account.

Unadjusted Balanc % uncollectible Required Allowance

<60 days 780,000.00 1% 7,800.00
61-90 days 230,000.00 5% 11,500.00
91-120 days 420,000.00 15% 63,000.00
>120 days 50,000.00 40% 20,000.00
Total Required Allowance for Doubtful Accounts 102,300.00

Unadjusted AR 1,500,000.00
Write Off (20,000.00)
Required Allowance (102,300.00)
Net Realizable Value of AR 1,377,700.00

Problem 8: CAGALAWAN
Unadjusted Adjustments Adjusted % Allowance
0-1 Month 186,480.00 4,000.00 190,480.00 1.00%
1-3 months 153,640.00 1,000.00 154,640.00 2.00%
3-6 months 44,360.00 44,360.00 3.00%
>6 months 2,000.00 (2,000.00) -
4,000.00 4,000.00 50.00%
6,000.00 6,000.00 20.00%
Total 396,480.00 399,480.00

Debit Credit
ADA, beg 7,316.00
Writen off accounts (prior adjustments) 3,016.00
Writen off accounts (>60 months) 2,000.00
Recovery 1,648.00
Error 1,400.00
ADA, end (required allowance) 9,528.40
Total 15,944.40 8,964.00
Provision-DAE 6,980.40

Problem 9: KA PREQUENCIA
Credit Sales Write Off Recovery Writeoff (net)
2013 3,000,000.00 30,000.00 - 30,000.00
2014 4,500,000.00 76,000.00 5,400.00 70,600.00
2015 5,900,000.00 104,000.00 5,000.00 99,000.00
2016 6,600,000.00 130,000.00 9,600.00 120,400.00
2017 8,000,000.00 166,000.00 10,000.00 156,000.00
28,000,000.00 476,000.00
% of DAE 1.70%

(4 years) 20,000,000.00 320,000.00

1.60%

Accounts Receivable Ending 3,500,000.00

% of ADA 1.70%
ADA, Ending 59,500.00

Debit Credit
ADA, Beginning 48,000.00
Writeoff 166,000.00
Recovery 10,000.00
166,000.00 58,000.00
ADA, end 59,500.00
Provision-DAE 167,500.00

Problem 10: SINAGDA

Loan from FFF 500,000.00
Discounted interest, 12% 30,000.00 470,000.00

Loan from GGG Company 1,000,000.00

Factoring Fee 20,000.00
Withheld amount 100,000.00 880,000.00
Total cash from financing 1,350,000.00
Required Allowance
1,904.80
3,092.80
1,330.80
-
2,000.00
1,200.00
9,528.40
Problem 1: KATHLEEN
List Price 5,000,000.00
Trade Discount 20% 1,000,000.00
4,000,000.00
Trade Discount 10% 400,000.00
Invoice Price/ Accounts Receivable 3,600,000.00

Problem 2: JU-AR
Trade Accounts Receivable 93,000.00
Claims from Shipper 3,000.00
Total Trade and Other Recevables 96,000.00
Allowance for Uncollectible Accounts (2,000.00)
Net Trade and Other Receivables 94,000.00

Problem 3: STAVE
AR Customers 7,800,000.00
AR officers 500,000.00
PDC from customers 400,000.00
Debit-Bal-Creditors 300,000.00
Total 9,000,000.00
ADA 200,000.00
Net 8,800,000.00

Problem 4: ROI
Accounts Receivable ADA-Debit ADA-Credit
Credit Sales 2018 6,000,000.00
Collection (4,500,000.00)
Ending Balance, 2018 1,500,000.00 300,000.00
Credit Sales, 2019 8,000,000.00
Collection (6,950,000.00)
Accounts Written Off (70,000.00) 70,000.00
Recovery 20,000.00 20,000.00
Ending Balance, 2019/ Total 2,500,000.00 375,000.00
Doubtful Accounts Expense 125,000.00

Doubtful Accounts Expense 125,000.00

Allowance for Doubtful Accounts 125,000.00
To record provision for uncollectible accounts.

Problem 5: SHALE
AR ADA DAE
Beginning 3,600,000.00 72,000.00
Sales 38,400,000.00
Collection (31,360,000.00)
Sales Discounts (640,000.00)
Worthless Accounts (160,000.00) (160,000.00)
Recovery of Written Off Accoun 40,000.00 40,000.00
(40,000.00)
Provision for DA 184,000.00 184,000.00
Collection from pledged AR (1,200,000.00)
Total 8,640,000.00 136,000.00 184,000.00

PROBLEM 6: ANN
Cash Discount 6,000.00
Disount Rate 2%
Total AR subject to discount 300,000.00
% of customers who took advantage of discount 10%
AR, end 3,000,000.00

ADA, beg 40,000.00

Recovery 3,000.00
Writte off accounts (44,000.00)
ADA, end (6% of AR end) 180,000.00
Provision-DAE 181,000.00

AR, end 3,000,000.00

Cash Discount 6,000.00
ADA, end 180,000.00
NRV 2,814,000.00

Problem 7: CAROL
AR-assigned DEBIT CREDIT
Unadjusted Balance 400,000.00
Collection 110,000.00
discounts 380.00
Sales Returns 1,350.00
Write Off 2,980.00
Totals 400,000.00 114,710.00
Ending Balance 285,290.00

Problem 8: ALECSANDRA
AR-assigned 3,000,000.00
Loanable Percentage 80%
Loan Value 2,400,000.00
Collection from AR 2,000,000.00
Interest on Notes 1% 24,000.00 1,976,000.00
NP Balance 424,000.00

Problem 9: LOIDA

Bad Debts Expense 1,296.00

Allowance for Bad Debts 1,296.00
To correct the entry made on Dec 1.

Unadjusted Adjustments Adjusted

0-1 Month 372,960.00 8,000.00 380,960.00
1-3 months 307,280.00 2,000.00 309,280.00
3-6 months 88,720.00 88,720.00
>6 months 2,000.00 (2,000.00) -
4,000.00 4,000.00
18,000.00 18,000.00
Total 792,960.00 800,960.00

Accounts Receivable, Ending 800,960.00

ADA, end 18,256.80
Net Realizable Value 782,703.20

Debit
ADA, beg
Writen off accounts (prior adjustments) 6,032.00
Writen off accounts (>60 months) 2,000.00
Recovery
Error 800.00
ADA, end (required allowance) 18,256.80
Total 27,088.80
Provision-DAE

Problem 10: PORCHER

Credit Sales Write Off Recovery
2016 10,000,000.00 250,000.00 20,000.00
2017 14,000,000.00 400,000.00 30,000.00
2018 16,000,000.00 650,000.00 50,000.00
40,000,000.00
% DAE (2018) 3.00%

Credit Sales, 2019 25,000,000.00

% DAE (2018) 3.00%
Doubtful Accounts Exp 2019 750,000.00
% Allowance Required Allowance
1.00% 3,809.60
 2.00% 6,185.60
3.00% 2,661.60
-
50.00% 2,000.00
20.00% 3,600.00
18,256.80

Credit
15,250.00
1296
3280
1,296.00 2256
6832

16,546.00
10,542.80

Writeoff (net)
230,000.00
370,000.00
600,000.00
1,200,000.00
Problem 1: LOIDA Company
Face Amount PV Factor
Principal (300,000 x 3 years) 300,000.00 1.00 300,000.00
300,000.00 1.783 534,979.42
CA of Loan
Impairment Loss

PV of Loan 834,979.42
Principal Payment 300,000.00
Carrying Amount, 2019 534,979.42
Interest Rate 8%
Interest Income 42,798.35

Problem 2: CARROL Corporation

Notes Receivable Interest Income
RICHELLE Company 200,000.00
FRITZIE Company 900,000.00

CAILYN Subscription Receivable 12,500.00

ROI Company Accounts Receivable 16,000.00
RONNAN Advances to Officers
JU-AR Company 120,000.00 5,760.00

Total 1,220,000.00 34,260.00

Problem 3: MIKE
Notes Receivable from sale of plant
C
a. NR from sale of plant
Principal Payments 1,000,000.00
Principal Jan to Mar 2019 3,000,000.00
Interest Rate 12%

Principal Apr to Dec 2019 2,000,000.00

Interest Rate 12%

b. NR from officer
interest income

c. NR for sale of equipment 400,000.00

PV Factor (12%) 0.797
PV of the note (12%)
Accrued Interest Apr to Dec

d. NR for tract of land

Payment due on 2020 451,250.00
Interest of the Note, 2020 154,000.00
Principal 1,400,000.00
Current Portion/ Due in 201 297,250.00

Principal 1,400,000.00
Interest for July to Dec 2019 11%
Total 1,000,000.00

NR-Sale of Plant 1,000,000.00

NR- Offficer -
NR- Sale of Equipment -
NR-Sale of Land 297,250.00
Total NR-Current 1,297,250.00

NR-Sale of Plant 1,000,000.00

NR- Offficer 800,000.00
NR- Sale of Equipment 318,800.00
NR-Sale of Land 1,102,750.00
Unearned Interest 28,692.00
Total Receivable-NonCurrent 3,250,242.00
 Present Value

834,979.42
900,000.00
65,020.58

Interest Receivable

12,500.00
Doubtful of collection

5,760.00

18,260.00

Receivable from sale of plant Notes Receivable from officer Notes Receivable from sale of equipment
NC C NC C NC

1,000,000.00

800,000.00

318,800.00
1,000,000.00 - 800,000.00 - 318,800.00
Notes Receivable from sale of land Accrued Interest Interest Income
C NC

90,000.00

180,000.00 180,000.00

80,000.00

28,692.00

297,250.00
 1,102,750.00

77,000.00 77,000.00
297,250.00 1,102,750.00 257,000.00 455,692.00
Dr. Cash, Cr. Interest Income

Dr. Interest Receivable, Cr. Interest Income

Dr. Cash, Cr. Interest Income

Dr. Unearned Interest, Cr. Interest Income

Dr. Interest Receivable, Cr. Interest Income
Problem 1: PASAR
Receivable PVF PV
Principal installment 2021 600,000.00 0.8900 534,000.00
Principal installment 2023 600,000.00 0.7921 475,260.00
PV of future cash inflows 1,009,260.00

Original Principal 2,000,000.00

Accrued Interest 120,000.00
CA of Original loan 2,120,000.00
PV of future cash inflows 1,009,260.00
Impairment Loss (1,110,740.00)

CA 12/31/19 1,009,260.00
Interest Rate 6%
Interest Income 2020 60,555.60

Interest IncomePrincipal Payment

Amortization of Interest
12/31/2019
12/31/2020 60,555.60 - 60,555.60
12/31/2021 64,188.94 600,000.00 64,188.94
12/31/2022 32,040.27 32,040.27
12/31/2023 33,962.69 600,000.00 33,962.69

Problem 2: GRAD WAITING CO

Current Notes ReNon Current NotInterests Receiv
a. Land
1-Jan 1,320,000.00
0.8264 1,090,848.00

31-Dec 109,084.80

b. Consultation Services

Principal 1,800,000.00
PVF of Principal 0.7513
PV of Principal 1,352,340.00
Interest Payments 90,000.00
PVOA of Interest 2.4869
PV of Interest 223,821.00 1,643,777.10

c. Equipment
Principal 1,200,000.00
PVOA of Principal 2.3216
2,785,920.00 1,002,406.00 1,094,694.04

Interest Year 1 144,000.00

PVF Interest Year 1 0.8772
PV Interest Year 1 126,316.80

Interest Year 2 96,000.00

PVF Interest Year 2 0.7695
PV INterest Year 2 73,872.00

Interest Year 3 48,000.00

PVF Interest Year 3 0.6750
PV Interest Year 3 32,400.00
Total 2,093,254.00 2,738,471.14
 CA/ Balance
1,009,260.00
1,069,815.60
534,004.54
566,044.81
-

Interest Income

109,084.80

Interest Interest
Receivable Inome Amort CA/ Balance
1/1/2019 1,576,161.00
12/31/2019 90,000.00 157,616.10 67,616.10 1,643,777.10

157,616.10

Principal Interest Interest

Payment Receivable Inome Amort
1/1/2019
12/31/2019 1,200,000.00 144,000.00 422,591.23 278,591.23
422,591.23 12/31/2020 1,200,000.00 96,000.00 293,594.00 197,594.00
12/31/2021 1,200,000.00 48,000.00 153,257.17 105,257.17
 2.3216

0.8772
0.7695
0.6750
689,292.13
CA/ Balance
3,018,508.80
2,097,100.03
1,094,694.04
(48.80)