Problem 10-22 (AICPA Adapted) Black Company reported accounts payable on December 1 2021 at P4,500,000 before any necessary year-end adjustmen relating to the following transactions: On December 27, 2021, Black Company wrote and reconte checks to creditors totaling P2,000,000 causing an overdrae of P500,000 in Black Company's bank account on December 31, 2021. The checks were mniled out on January 10, 2022 On December 28, 2021, Black Company purchaied and received goods for P750,000 terms 2/10, n /30. Black Company records purchases and accounts payable at net amount. The invoice was recorded and paid January 5 2022. Goods shipped FOB destination, 5/10, n/30 on December 20, 2021 from a vendor to Black Company were recnived January 15, 2022, The invoice cost was P325,000.

Problem 10-22 (AICPA Adapted) Black Company reported accounts payable on December 1 2021 at P4,500,000 before any necessary year-end adjustmen relating to the following transactions: On December 27, 2021, Black Company wrote and reconte checks to creditors totaling P2,000,000 causing an overdrae of P500,000 in Black Company's bank account on December 31, 2021. The checks were mniled out on January 10, 2022 On December 28, 2021, Black Company purchaied and received goods for P750,000 terms 2/10, n /30. Black Company records purchases and accounts payable at net amount. The invoice was recorded and paid January 5 2022. Goods shipped FOB destination, 5/10, n/30 on December 20, 2021 from a vendor to Black Company were recnived January 15, 2022, The invoice cost was P325,000.

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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59 . A company’s accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary year-end adjustments relating to the following transactions and information: On December 27, 2021, the company wrote and issued checks to creditors totaling P350,000. The issuance of the checks was recorded on January 3, 2022. On December 28, 2021, the company purchased and received goods for P150,000, terms 2/10, n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3, 2022 Goods shipped FOB Destination on December 20, 2021, from a vendor to the company were received on January 2, 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022. Goods costing P120,000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022. The P1,000,000 ledger balance of accounts payable is net of P80,000 debit balance in one…
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Mar Company provides the following information on December 31, 2020: Income taxes withheld from employees Cash balance at First State Bank Cash overdraft at Harbor Bank Accounts receivable with credit balance Estimated expenses of meeting warranties on merchandise previously sold Estimated damages as a result of unsatisfactory performance on a contract Accounts payable Deferred serial bonds, issued at par and bearing an interest at 12% payable in semi-annual installment of P500,000 due on April 1 and Oct.1, the last bond to be paid on April 1 and Oct. 1, 2026. Interest is also paid semi-annually. Stock dividend payable Compute the total current liabilities as of Dec. 31, 2020. 900,000 2,500,000 1,300,000 750,000 500,000 1,500,000 3,000,000 5,000,000 2,000,000
On December 31, 2020, Extreme Fitness has adjusted balances of $830,000 in Accounts Receivable and $61,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $13,000. Required: Assume that on February 2, 2021, Extreme Fitness received a payment of $800 from one of the customers whose balance had been written off. Prepare the journal entries to record this transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the reversal of a customer account previously written off in the amount of $800. On December 31, 2020, Extreme Fitness has adjusted balances of $830,000 in Accounts Receivable and $61,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so…
14. On December 31, 2021, Andy Inc. has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment. Andy Inc. also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts: A. B. C. D. Age Group (days past due) 0-30 31-60 61-90 $6,500. $1,500. $5,000. $8,000. Accounts Receivable $50,000 $20,000 $10,000 Estimated Percent Uncollectible 5% What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2021 using the aging method? 10% 20%
Johnson Company calculates its allowance for uncollectible accounts as 20% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $21,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $350,200, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 38,400 Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021. 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021? Required 1 Required 2 Required 3 Required 4 What was…
How much is the accounts receivable as of December 31, 2019? * 460,800 434,400 405,600 398,400
18. Tangier Company had a January 1, 2022, balance in Allowance for Doubtful Accounts of $7,000 Cr. The following events required journal entries during 2022: Apr. 15 Diya’s account receivable of $5,700 was deemed uncollectible. July 1 Nitosa paid the full amount of her previously written-off account receivable. The receivable of $2,300 had been written off in 2021. Dec. 31 Bad debts expense was estimated to be 2.0 percent of net credit sales, which had amounted to $375,000. What amount of Allowance for Doubtful Accounts should appear in the December 31, 2022 balance sheet? a. $6,500 b. $11,100 c. $22,500 d. $17,900 e. None of the above. 19. Nguyen Company had $250,000 of Accounts Receivable and a $7,500 credit balance in its Allowance for Doubtful Accounts account just prior to writing off a $2,000 uncollectible account of a customer. After the write-off, the carrying amount (NRV-Net Realizable…