antiago, Inc. has the following receipts during 2018: From service billings to client P400,000 Advances from clients 100,000 Total cash collection P500,000 The P100,000 advances refer to services which will be rendered next year. Total uncollected billing increased from P100,000 on December 31, 2017 to P150,000 on December 31, 2018. Compute the gross income using accrual basis. P400,000 P500,000

antiago, Inc. has the following receipts during 2018: From service billings to client P400,000 Advances from clients 100,000 Total cash collection P500,000 The P100,000 advances refer to services which will be rendered next year. Total uncollected billing increased from P100,000 on December 31, 2017 to P150,000 on December 31, 2018. Compute the gross income using accrual basis. P400,000 P500,000

Name: Santiago, Inc. has the following receipts during 2018:From service bil
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Description: Santiago, Inc. has the following receipts during 2018:From service billings to client P400,000 Advances from clients100,000Total cash collectionP500,000The P100,000 advances refer to services which will be rendered next year. Total uncollected billin

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
BTS Company had the following data relating to its accounts receivable.Accts. Receivable, Dec. 31, 2020 - P1,300,000Credit sales for 2021 - P5,400,000Collections from customers during 2021, excluding recoveries - P4,750,000Accounts written off on Sept. 30, 2021 - P95,000Recoveries of accounts previously written off in prior years - P20,000Est. uncollectible receivables per aging, Dec. 31, 2021 - P165,000How much is the amortized cost of BTS Company’s accounts receivable at December 31, 2021?
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The following data were provided by Ninety Incorporated for the year 2021: Accounts Receivable, beginning 1,100,000 Accounts Receivable, ending 1,400,000 Accounts written off 45,000 Credit Sales 6,890,000 Cash Sales 3,455,000 Sales discounts granted to credit customers 132,000 Allowance for doubtful accounts 230,000 Sales Revenues under accrual basis would be Sales Revenues under cash basis would be
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Liberty Corporation reported the following financial statements: Assume all sales are on credit. During 2019, Liberty’s days’ sales in receivables ratio Was (amounts rounded) a. 34 days. b. 30 days. c. 32 days. d. 28 days
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