Rea Lee Joy Pido Score: ____________
730am & 945am
A. The statement of financial position of Toyota Products, Inc. shows the accounts
receivable balance at December 31, 2015 as follows:
Accounts Receivable-trade P450,000
Allowance for Doubtful Accounts 9,000
441,000
During 2016, transactions relating to the accounts were as follows: a.
Sales on account, P4,800,000
b. Cash received from collection of current receivable totaled P3,920,000 after
discounts of P80,000 were allowed for prompt payment.
c. Credit memo issued to customers for sales returns, P60,000.
d. Customer’s accounts of P20,000 were ascertained worthless and written off.
e. Recovered P5,000 of accounts written off prior to 2016.
f. Received a 90-day, 12% note for P25,000 from a customer on an overdue account.
g. Accounts receivable of P700,000 have been pledged to a local bank on a loan of
P400,000. Collections of P150,000 were made on these receivables (not included in
the collections previously given) and applied as partial payment to the loan.
h. Based on assessment of the impairment of receivables, it is estimated that allowance
for uncollectible accounts should be P59,000 at December 31.
i. Recorded the accrued interest on the note in (f). The note was dated December 1,
2015.
Required: Prepare journal entries to record the foregoing transactions. After preparing
the journal entries, determine the amortized cost of the accounts receivable at
December 31, 2016.
a. Accounts receivable 4,800,000
Sales 4,800,000
b. Cash 3,920,000
Sales discount 80,000
Accounts receivable 4,000,000
c. Sales returns and allowances 60,000
Accounts receivable 60,000
d. Allowance for doubtful accounts 20,000
Accounts receivable 20,000
e. Accounts receivable 5,000
Allowance for doubtful accounts 5000
Cash 5,000
Accounts receivable 5,000
f. Notes receivable 25,000
Accounts receivable 25,000
g. Cash 400,000
Notes payable-bank 400,000
730am & 945am
A. The statement of financial position of Toyota Products, Inc. shows the accounts
receivable balance at December 31, 2015 as follows:
Accounts Receivable-trade P450,000
Allowance for Doubtful Accounts 9,000
441,000
During 2016, transactions relating to the accounts were as follows: a.
Sales on account, P4,800,000
b. Cash received from collection of current receivable totaled P3,920,000 after
discounts of P80,000 were allowed for prompt payment.
c. Credit memo issued to customers for sales returns, P60,000.
d. Customer’s accounts of P20,000 were ascertained worthless and written off.
e. Recovered P5,000 of accounts written off prior to 2016.
f. Received a 90-day, 12% note for P25,000 from a customer on an overdue account.
g. Accounts receivable of P700,000 have been pledged to a local bank on a loan of
P400,000. Collections of P150,000 were made on these receivables (not included in
the collections previously given) and applied as partial payment to the loan.
h. Based on assessment of the impairment of receivables, it is estimated that allowance
for uncollectible accounts should be P59,000 at December 31.
i. Recorded the accrued interest on the note in (f). The note was dated December 1,
2015.
Required: Prepare journal entries to record the foregoing transactions. After preparing
the journal entries, determine the amortized cost of the accounts receivable at
December 31, 2016.
a. Accounts receivable 4,800,000
Sales 4,800,000
b. Cash 3,920,000
Sales discount 80,000
Accounts receivable 4,000,000
c. Sales returns and allowances 60,000
Accounts receivable 60,000
d. Allowance for doubtful accounts 20,000
Accounts receivable 20,000
e. Accounts receivable 5,000
Allowance for doubtful accounts 5000
Cash 5,000
Accounts receivable 5,000
f. Notes receivable 25,000
Accounts receivable 25,000
g. Cash 400,000
Notes payable-bank 400,000
