Problem 1.5: Anne Corporation accounts for its sales under the cash basis. Anne Corporation cash receipts books amounted to P 1,400,000. Total collections from customers, including cash sales made and recoveries of previously written-off accounts. Based on Audit investigation, they revealed that the additional information are the following: Accounts receivable, January 1, 2021 Accounts receivable, December 31, 2021 Notes receivable, trade outstanding, January 1, 2021 Notes receivable, trade outstanding, December 31, 2021 Sales discount taken by customers Sales returns before collections were made (Evidenced by issued credit memos) Sales returns after collections were made, thus refunds were given Write-off worthless accounts receivable Cash recoveries from accounts previously write-off Requirements: Compute for the following under the accrual basis of accounting: a. Gross sales for the year b. Net sales for the year 100,000 140,000 80,000 90,000 40,000 25,000 5,000 30,000 10,000 c. Uncollectible accounts were P 21,000 and P 35,000 at the beginning and at the end of the year, respectively

Problem 1.5: Anne Corporation accounts for its sales under the cash basis. Anne Corporation cash receipts books amounted to P 1,400,000. Total collections from customers, including cash sales made and recoveries of previously written-off accounts. Based on Audit investigation, they revealed that the additional information are the following: Accounts receivable, January 1, 2021 Accounts receivable, December 31, 2021 Notes receivable, trade outstanding, January 1, 2021 Notes receivable, trade outstanding, December 31, 2021 Sales discount taken by customers Sales returns before collections were made (Evidenced by issued credit memos) Sales returns after collections were made, thus refunds were given Write-off worthless accounts receivable Cash recoveries from accounts previously write-off Requirements: Compute for the following under the accrual basis of accounting: a. Gross sales for the year b. Net sales for the year 100,000 140,000 80,000 90,000 40,000 25,000 5,000 30,000 10,000 c. Uncollectible accounts were P 21,000 and P 35,000 at the beginning and at the end of the year, respectively

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 5AP

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1. In connection with the audit of NMD Inc. financial statements, the following data was gathered in connection to its accounts receivable for the year ended December 31, 2019. Accounts Receivable, Jan. 1, 2019 720,000 Allowance for Doubtful Accounts, Jan. 1, 2019 28,800 Sales during the year, all on account, terms 2/10, 1/15, n/60 3,600,000 Cash received from customers 3,840,000 Accounts written off 33,600 An analysis of the cash received from customers during the year revealed that P2,116,800 was received from customers availing the 10-day discount period, P1,188,000 from customers availing the 15-day discount period, P6,840 represented recovery of accounts written off, and the balance was received from customers paying beyond the discount period. NMD's year-end balance of allowance for doubful accounts was estimated to be 5% of the outstanding accounts receivable as of December 2019. How much is the accounts receivable as of December 31, 2019? a.460,800…
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