The allowance for doubtful accounts had a credit balance ofDreamer Company reported the "Receivables" account withProblem 4-1 (IAA)Deeamer Company reported the "Receivables" account witha debit balance of P2,000,000 at year-end.ofP50,000 on same date.Subsidiary details revealed the following:leTrade accounts receivableTrade notes receivableInstallments receivable, normally due 1 year to two yearsCustomers' accounts reporting credit775,000100,000300,000ts.balances arising from sales returnAdvance payments for purchase of merchandise30,000)150,000adCustomers' accounts reporting creditbalances arising from advance paymentsCash advance to subsidiaryforClaim from insurance entitySubscriptions receivable due in 60 daysAccrued interest receivable( 20,000)400,00015,000300,00010,0002,000,000Required:choa. Prepare one compound entry to reclassify the receivablesaccount.b. Compute the amount to be presented as "trade and otherreceivables" under current assets.c. Indicate the classification and presentation of the otheritems excluded from "trade and other receivables".th

Dreamer Company's Receivables account has debit balance = P2000000 at year end Doubtful debts has…

Dreamer Company reported the "Receivables" account with a debit balance of P2,000,000 at year-end. The allowance for doubtful accounts had a credit balance of P50,000 on same date. Subsidiary details revealed the following: 775,000 100,000 300,000 Trade accounts receivable Trade notes receivable Installments receivable, normally due 1 year to two years Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise Customers' accounts reporting credit balances arising from advance payments. Cash advance to subsidiary Claim from insurance entity Subscriptions receivable due in 60 days Accrued interest receivable ( 30,000) 150,000 ( 20,000) 400,000 15,000 300,000 10,000 2,000,000 Required: a. Prepare one compound entry to reclassify the receivables account. b. Compute the amount to be presented as "trade and other receivables" under current assets. c. Indicate the classification and presentation of the other items excluded from "trade and other receivables".

Dreamer Company reported the "Receivables" account with a debit balance of P2,000,000 at year-end. The allowance for doubtful accounts had a credit balance of P50,000 on same date. Subsidiary details revealed the following: 775,000 100,000 300,000 Trade accounts receivable Trade notes receivable Installments receivable, normally due 1 year to two years Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise Customers' accounts reporting credit balances arising from advance payments. Cash advance to subsidiary Claim from insurance entity Subscriptions receivable due in 60 days Accrued interest receivable ( 30,000) 150,000 ( 20,000) 400,000 15,000 300,000 10,000 2,000,000 Required: a. Prepare one compound entry to reclassify the receivables account. b. Compute the amount to be presented as "trade and other receivables" under current assets. c. Indicate the classification and presentation of the other items excluded from "trade and other receivables".

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Attempt in Progress At the beginning of the current period, Whispering Ltd. had balances in Accounts Receivable of £288,000 and in Allowance for Doubtful Accounts of £9,300 (credit). During the period, it had net credit sales of £860,000 and collections of £817,000. It wrote off as uncollectible accounts receivable of £6,800. However, a £3,600 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total £24,300 at the end of the period. (Omit cost of goods sold entries.) (a) Prepare the entries to record sales and collections during the period.. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period.
The credit manager of Sweet Sales Inc. has gathered the following information about the company's accounts receivable and credit losses during the current year: Net credit sales for the year Accounts receivable at year-end Uncollectible accounts receivable: Actually written off during the year Estimated portion of year-end receivables expected to prove uncollectible (per aging schedule) $91,000 84,000 $7,500,000 1,750,000 175,000 a. Uncollectible accounts expense is estimated at an amount equal to 2.5 percent of net credit sales. b. Uncollectible accounts expense is recognized by adjusting the balance in the Allowance for Doubtful Accounts to the amount indicated in the year-end aging schedule. The balance in the allowance account at the beginning of the current year was $25,000. (Consider the effect of the write-offs during the year on the balance in the Allowance for Doubtful Accounts.) c. The company uses the direct write-off method of accounting for urlcollectible accounts. Prepare…
Based on the information: Credit sales - P 172,000 credit Collections on accounts receivable during the year - P170,000 credit Cash sales - 810,000 credit Unadjusted balance in Allowance for doubtful accounts - 50 debit Sales returns and allowances for credit sales - 4,000 debit Accounts receivable, beginning of the year - 14,000 debit If bad debts are estimated to be 1 1/2% of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: a. P 230 b. P 180 c. P 130 d. P 190
At the beginning of the current period, Skysong, Inc. had balances in Accounts Receivable of $197,000 and in Allowance for Doubtful Accounts of $9,040 (credit). During the period, it had net credit sales of $862,700 and collections of $838,670. It wrote off as uncollectible accounts receivable of $7,477. However, a $3,049 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,310 at the end of the period. (Omit cost of goods sold entries.) (a-d) (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period.
If Vabasa, Inc. has an average collection period (ACP) of 52.5 days (assume a 360 day year) and annual net credit sales of 11,513,000, what is accounts receivable for Vabasa? Enter your answer as a whale number rounded to 0 decimal places, but do not include a dollar sign or any commas in your answer. For example, enter $4,392,118.9342 as 4392119. Your Answer: Answer
A company has net credit sales of $499000 for the year and it estimates that uncollectible accounts will be 3% of its Account Receivables balance. If Allowance for Doubtful Accounts has a credit balance of $2000 prior to adjustment, its balance after adjustment will be a credit of $16970. $14970. $12970. $14910.
The net realizable value of the accounts receivable at December 31, 2021 isoverstated (understated) by: Please include solutions. Thank you!
Company I had the following balances at the end of the year: Accounts receivable: $50,000 Allowance for doubtful accounts: $2,000 (credit balance) The company estimates that 2% of accounts receivable will be uncollectible. Record the journal entry to adjust the allowance for doubtful accounts.
Gregg company uses the allowance method for recording its expected credit losses. It estimates credit losses at 3% of credit sales, which were $900,000 during the year. On December 31 the accounts receivable balance was 150,000, and the allowance for doubtful accounts had a credit balance of 12,200 before adjustment. A. Prepare the adjusting entry to record the credit losses for the year. B. Show how accounts receivable and the allowance for doubtful accounts would appear in the December 31 balance sheet. The top 2 shaded blanks have the options of Bad debts expense, allowance for doubtful accounts. The bottom 2 shaded blanks have the options of accounts receivable, less: allowance for doubtful accounts.
The following information has been extracted from the annual reports of Lilydale Ltd and Monbulk Ltd. Lilydale Ltd Monbulk Ltd $2 950 300 17 100 Sales (net credit) revenue for year Allowance for Doubtful Debts, 1/7/18 Allowance for Doubtful Debts, 30/6/19 Accounts receivable (gross) 1/7/18 Accounts receivable (gross) 30/6/19 $2 204 300 27 100 19780 28 100 722 650 368 000 485 800 384 200 (a) Calculate the receivables turnover ratio and average collection period for both companies. Comment on the difference in their collection experiences. (b) Compare the success or otherwise of their cash collection policies, given that the average receivables turnover for the industry in which the companies operated is 7. Credit terms for both companies are 2/10, n/30.