Essay101
Acc101 – Quiz on Receivables
Show your supporting computations in good form. Encircle your final answer.
Problem 1
For the year ended December 31, 2009, Colt Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/09 P51,000 Provision for uncollectible accounts during 2009 (2% on credit sales of P2,000,000) 40,000 Uncollectible accounts written off, 11/30/09 46,000 Estimated uncollectible accounts per aging, 12/31/09 69,000
After year-end adjustment, the uncollectible accounts expense for 2009 should be _________.
Problem 2
The following information pertains to Acacia, Inc. for the year ended December 31, 2009:
Credit sales during 2009
P3,450,000
Collection of accounts written off in prior periods
165,000
Worthless accounts written off in 2009
189,000
Allowance for doubtful accounts, Jan. 1, 2009
145,000
Acacia, Inc. provides for doubtful accounts based on 1 ½% of credit sales.
What is the balance of the allowance for doubtful accounts at December 31, 2009?
Problem 3
The adjusted trial balance of Galimuyod Company as of December 31, 2009 shows the following balances: Accounts receivable – P1,000,000 Allowance for bad debts – P40,000
Additional information:
Cash sales of the company represents 10% of gross sales.
90% of the credit sales customers do not take advantage of the 2/10,n/30 terms.
It is expected that cash discount of P6,000 will be taken on accounts receivable outstanding at December 31, 2010.
Sales returns in 2010 amounted to P400,000. All returns were from charge sales.
During 2010, accounts totaling to P44,000 were written off as uncollectible, bad debt recoveries during the year amounted to P3,000.
The allowance for bad debts is adjusted so that it represents certain percentage of the outstanding accounts receivable at year – end. The required percentage at December 31,
Show your supporting computations in good form. Encircle your final answer.
Problem 1
For the year ended December 31, 2009, Colt Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/09 P51,000 Provision for uncollectible accounts during 2009 (2% on credit sales of P2,000,000) 40,000 Uncollectible accounts written off, 11/30/09 46,000 Estimated uncollectible accounts per aging, 12/31/09 69,000
After year-end adjustment, the uncollectible accounts expense for 2009 should be _________.
Problem 2
The following information pertains to Acacia, Inc. for the year ended December 31, 2009:
Credit sales during 2009
P3,450,000
Collection of accounts written off in prior periods
165,000
Worthless accounts written off in 2009
189,000
Allowance for doubtful accounts, Jan. 1, 2009
145,000
Acacia, Inc. provides for doubtful accounts based on 1 ½% of credit sales.
What is the balance of the allowance for doubtful accounts at December 31, 2009?
Problem 3
The adjusted trial balance of Galimuyod Company as of December 31, 2009 shows the following balances: Accounts receivable – P1,000,000 Allowance for bad debts – P40,000
Additional information:
Cash sales of the company represents 10% of gross sales.
90% of the credit sales customers do not take advantage of the 2/10,n/30 terms.
It is expected that cash discount of P6,000 will be taken on accounts receivable outstanding at December 31, 2010.
Sales returns in 2010 amounted to P400,000. All returns were from charge sales.
During 2010, accounts totaling to P44,000 were written off as uncollectible, bad debt recoveries during the year amounted to P3,000.
The allowance for bad debts is adjusted so that it represents certain percentage of the outstanding accounts receivable at year – end. The required percentage at December 31,