1. Ms.

Hilado

Accounts Receivable, January 1

Credit Sales
Collections from customers, excluding recovery
Accounts written off
Collection of accounts written off in prior year (customer credit was not reestablished)
Estimated uncollectible receivables per aging of receivables at December 31

What is the balance of Accounts Receivable, before allowance for doubtful accounts?

Accounts Receivable, January 1

Credit Sales
Collections from customers, excluding recovery
Accounts written off
Accounts Receivable, December 31
 1,300,000.00
5,400,000.00
4,750,000.00
125,000.00
25,000.00
165,000.00

1,300,000.00
5,400,000.00
4,750,000.00
125,000.00 - 4,875,000.00
1,825,000.00

Doubtful
DAE XXX
ADA XXX

Writeoff:
ADA XXX
A/R XXX
1. Ms. Eroy

Credit Sales
Sales Returns
Accounts written off
Collection from customers
Accounts Receivable, January 1
Estimated future sales returns at December 31
Estimated uncollectible accounts at 12/31 per aginh

Net Realizable Value, December 31

Accounts Receivable, January 1

Add: Net Credit Sales:
Credit Sales
Sales Returns and Allowances
Less: Collection/s form Customers
Accounts Written off
Accounts Receivable, December 31
Less: Allowance for Sales Returns
Less: Sales Discounts
Less: Allowance for freight Charge
Less: Allowance for doubtful accounts

Net Realizable Value, December 31

 2,700,000.00
75,000.00
40,000.00
2,150,000.00
650,000.00
50,000.00
110,000.00

650,000.00

2,700,000.00
- 75,000.00 2,625,000.00
- 2,150,000.00
- 40,000.00
1,085,000.00
50,000.00
-
-
110,000.00 - 160,000.00

925,000.00
Accounts Receivable- customers
Accounts Receivable- officers
Debit balances- creditors
Postdated checks from customers
Subscription receivable
Accounts payable for merchandise
Credit balances in customer's account
Cash received in advance from customers for goods not yet shipped
Expected bad debts

After further analysis of the aged A/R, it is determined that the allowance for doubtful accounts
should be 200,000. What amount should be reported as trade and other receivables under CA section?

Accounts Receivable- customers

Accounts Receivable- officers
Debit balances- creditors
Postdated checks from customers
Allowance for doubtful accounts
Total Trade and Other Receivables
Debit Credit
7,800,000.00
500,000.00
300,000.00
400,000.00
800,000.00
4,500,000.00
200,000.00
100,000.00
150,000.00

7,800,000.00
500,000.00
300,000.00
400,000.00
- 200,000.00
8,800,000.00
1. Mr. Jarabe
2. Ms. Eroy

What is the balance of A/R on December 31?

A/R, January 1 4,000,000.00

A/R Collected 8,400,000.00
Cash Sales 2,000,000.00
Inventory, January 1 4,800,000.00
Inventory, December 31 4,400,000.00
Purchases 8,000,000.00
Gross Margin on Sales 4,200,000.00

A/R, January 1 4,000,000.00

Add: Net Credit Sales 10,600,000.00
Less: Collection/s from Customers - 8,400,000.00
Less: Write- off -
Less: Recoveries -
A/R, December 31 6,200,000.00
Net Sales 12,600,000.00
Less: Cost of Sales* 8,400,000.00
Gross Margin 4,200,000.00

Inventory, January 1 4,800,000.00

Add: Net Purchases 8,000,000.00
Total Goods available for Sale 12,800,000.00
Less: Inventory, December 31 - 4,400,000.00
Cost of Sales* 8,400,000.00

Net Sales 12,600,000.00

Less: Cash Sales - 2,000,000.00
Net Credit Sales 10,600,000.00
1. Mr. Jarabe
2. Mr. Hilado
3. Ms. Laguidao

What is the balance of A/R on December 31?

Debits
January 1 balance after deducting credit balance of 30,000 530,000.00
Charge Sales 5,250,000.00
Charge for goods out on consignment 50,000.00
Shareholder's subscriptions 200,000.00
Accounts written off but recovered 10,000.00
Cash paid to customer for January 1 credit balance 25,000.00
Goods shipped to cover January 1 credit balance 5,000.00
Deposit on contract 120,000.00
Claim against common carrier 15,000.00
Advances to supplier 155,000.00

Credits
Collections from customers, including overpayment of 50,000 5,200,000.00
Writeoff 35,000.00
Merchandise returns 25,000.00
Allowances to customers for shipping damages 15,000.00
Collection on carrier claim 10,000.00
Collection on subscription 50,000.00

Correct Answer 595,000.00