Nova Accounts receivable, net of P520,000 allowance 2018: for doubtful accounts Interest receivable Notes receivable 3,840,000 190,000 4,000,000 , The notės receivable comprised: P1.000,000 note dated October 31, 2018, with principal and interest payable on October 31, 2019. P3.000,000 note dated March 31, 2018, with principal and 8% interest payable on March 31, 2019. • During 2019, sales revenue totaled P21,200,000, P19,800,000 cash was collected from customers, and P410,000 in accounts receivable were written off. All sales are made on a credit basis. • Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 1. What amount should be reported as interest income for 2019? а. 110,000 b. 240,000 60,000 d. 80,000 с. 2. What amount should be reported as doubtful accounts expense for 2019? a. 535,000 b. 425,000 c. 110,000 d. 410,000

Nova Accounts receivable, net of P520,000 allowance 2018: for doubtful accounts Interest receivable Notes receivable 3,840,000 190,000 4,000,000 , The notės receivable comprised: P1.000,000 note dated October 31, 2018, with principal and interest payable on October 31, 2019. P3.000,000 note dated March 31, 2018, with principal and 8% interest payable on March 31, 2019. • During 2019, sales revenue totaled P21,200,000, P19,800,000 cash was collected from customers, and P410,000 in accounts receivable were written off. All sales are made on a credit basis. • Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 1. What amount should be reported as interest income for 2019? а. 110,000 b. 240,000 60,000 d. 80,000 с. 2. What amount should be reported as doubtful accounts expense for 2019? a. 535,000 b. 425,000 c. 110,000 d. 410,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
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