Problem 2-9

Accounts Receivable 450,000

Allowance for Uncollectible 9,000
441,000
Entries
a. Accounts Receivable 4,800,000
Sales 4,800,000 Accounts Receivable
Allowance for Uncollectible Accounts
b. Cash 3,920,000 Amortized Cost
Sales Discount 80000
Accounts Receivable 4,000,000

c. Sales Returns 60000

Accounts Receivable 60000

d. Allowance for Uncollectible 20000

Accounts Receivable 20000

e. Accounts Receibale 5000

Allowance for Uncollectible Account 5000

Cash 5000
Accounts Receivable 5000

f. Notes Recivable 25000

Accounts Receivable 25000

g. Cash 400000
Notes Payable-Bank 400000

Cash 150000
Accounts Receivable 150000

Notes Payable-Bank 150000

Cash 150000

h. Bad Debts Expense 65000

Allowance for Uncollectible Account 65000
9000-20000+5000

i. Interest Receivable 250

Interest Revenue 250
995,000
59,000
936,000
Problem 1-2

Checking account 105,200.00

Saving Account 30,800.00
Petty Cash Fund 1,250.00
Cash on Hand 4,200.00
Cash in Foreign Bank 65,000.00
Travelers Check 14,000.00
Managers Check 23,120.00
Undelivered Check 62,000.00
Total Cash December 1, 2020 305,570.00

Problem 1-3

Check Book Balance 180,000.00

Customer Post Dated Check (65,000.00)
DAIF Customer Check (20,000.00)
Company's Undelivered Check 15,000.00
Total Cash Dec 31, 2020 110,000.00

Poblem 1-4

Unadjusted Cash Balance 2,205,600.00

DAIF Check from Customers (20,000.00)
Cash Fund for Office Equipment/NCFA (750,000.00)
IOUs from Employees (5,200.00)
Sinking Fund/NCFA (500,000.00)
Customers post dated check (25,400.00)
Travel Advances/Prepaid Expenses (8,000.00)
Total cash Dec 31, 2020 897,000.00

Problem 1-5
Unadjusted Cash Balance 1,980,000.00
IOU from Employees (1,250.00)
Customers Post Dated Check (17,500.00)
Deducted Bank Overdraft 12,500.00
Unreleased Check 10,000.00
Savings deposit restricted for equipment (500,000.00)
Correct Cash Balance 1,483,750.00

Problem 1-6
Savings Account: 900000
Customers Post dated -320000 580,000.00
Checking Account 1400000
 Undelivered Checks 300000 1,700,000.00
Petty Cash Fund: Bills and Coins 9,850.00
Money Market fund 2,000,000.00
Cert of Deposits: 3000000
Mature 120 days -2000000 1,000,000.00
Payroll fund 6000000
Undelivered check 50000 6,050,000.00
BPI Cash Maintaining Balance 5,000,000.00
Total Cash and Cash equivalents 16,339,850.00

Problem 1-7
20-Nov Petty Cash Fund 5,000.00
Cash in Bank 5000

15-Dec NO ENTRY

16-Dec Transpo exp 1,500.00

Representation Exp 1,200.00
Paid Freight In 1,300.00
Repairs 920.00
Cash In Bank 4,920.00

31-Dec Traspo Exp 340.00

Office Supplies 1,400.00
Petty cash fund 1,740.00

1-Jan Petty Cash Fund 1,740.00

Transpo Exp 340
Office Supplies 1400

8-Jan NO ENTRY

9-Jan Petty Cash Fund 3,000.00

Representation Exp 1,800.00
Office Supplies 2,700.00
Transpo Exp 460.00
Cash In Bank 7,960.00

Problem 1-8

Petty Cash Fund 5,000.00

Cash on Hand 670.4
Office Supplies 341.6
Transportation 1321.4
Postage 780
 Miscellaneous Exp 837.6
Representation 1000 4,951.00
Cash Shortage in Petty Cash Fund 49.00

Problem 1-9

2-May Petty Cash Fund 8,000.00

Cash In Bank 8000

20-May Freight In 2,500.00

Freight Out 3,000.00
Supplies 800.00
Cash In Bank 6,300.00

31-May Freight In 1,200.00

Transposrtation 150.00
Medicines 320.00
IOUs from Employees 500.00
Cash Shortage 130.00
Petty Cash Fund 2,300.00

Problem 1-10

Bills and Coins 1,450.00

Unisbursed Petty Cash Voucher (July1-7) 800.00
Adjusted Petty Cash Balance 2,250.00
Unreleased Payroll(unsigned) (1,500.00)
Correct Petty Cash Balance as of Jun 30 750.00

Bills and Coins 1,450.00

Voucher june 30 3,300.00
Voucher July 1-7 800.00
IOUs from Enployees 1,400.00
Post Dated Checks from EE 2000
Total Petty Cash Per Count 8,950.00
Cashiers Total Accountability:
Established Fund 10000
Unreleased Payroll 1500 11,500.00
Cash Shortage 2,550.00

Miscelaneous Exp 3,300.00

Receivable from employee 3,400.00
Cahs Shortover 2,550.00
Petty cash Fund 9250
Problem 1-11

Bills and Coins 4,560.00

Undisbursed vouchers Jan 2021 1,130.00
IOUs From Employees Jan 2021 1,000.00
Adjusted Balance of Petty Cash Fund 6,690.00
Unsigned Payroll (2,000.00)
Correct Petty cash Fund Bal Dec 31, 2020 4,690.00

Bills and Coins 4,560.00

vouchers Dec 2020 3,140.00
Vouchers Jan 2021 1,130.00
IOUs from employees Dec 2020 1,800.00
IOUs from employees Jan 2021 1,000.00
Total Petty Cash Fund Per Count 11,630.00
Total Cashiers Accountability:
Established Petty Cash Fund 10000
Unreleased Payroll 2000 12,000.00
Cash Shortage 370.00

Expenses 3,140.00
IOUs from Employees 1,800.00
Cash Shortage 370.00
Petty Cash Fund 5,310.00

Problem 1-12 Bank Reconciliation

Bank Balance per statement 199,925.00

Undeposited Cash on Hand 13,025.00
Deposit In Transit 35,000.00
Total 247,950.00
Outstanding Checks (204,055.00)
Adjusted Bank Balance 43,895.00

Book Balance per cash (OVERDRAFT) (32,560.00)

NSF Check (42,040.00)
Cash Sales Missing (64,025.00)
Overstatement of customers check (64,980.00)
Petty Cash Fund (5,000.00)
Note Collected by Bank 252,500.00
Adjusted Book Balance 43,895.00

Petty Cash Fund 3,200.00

Cash In Bank 43,895.00
Total Cash Reported in SFP 47,095.00
Problem 1-13
Deposit in Transit For Nov 30, 2020 35,000.00
Amount Debited in Ledger but
Not yet recorded by bank

Total Outsanding Check for Nov 30 2020

Check 613 5000
Check 614 4000
Check 616 16000 25,000.00
 Book Bank
180,000.00 1123500 1100000
(65,000.00) -4500 -67000
(20,000.00) 6000 84000
 15,000.00 -56000 1117000
110,000.00 48000
1117000

682250
-25000
-10500
-127500
-4950
-6450
507850
Accounts Receivables
Problem 4-1

Trade Accoiunts Receivable 775,000.00 Trade Accoiunts Receivable

Trade Notes Receivables 100,000.00 Trade Notes Receivables
Installment Receivables 300,000.00 Installment Receivables
Advances to Suppliers 150,000.00 Advances to Suppliers
Claim From Insurance Entity 15,000.00 Claim From Insurance Entity
Subscription Receivable 60days 300,000.00 Subscription Receivable 60days
Accrued Interest Receivable 10,000.00 Accrued Interest Receivable
Allowance For Doubtful Account (50,000.00) Receivables
Total Trade and other Receivables 1,600,000.00 Customers Credit Balance
Reposted as Current Assets Advances From Customers

>Advances to subsidiary is a long term investments hence, Non Current

>Customers credit bakances and advances from customers are current
liability under Trade and Other Payables

Problem 4-2

Accounts Receivable, Beg 600,000.00 Subscrition receivables

Sales 6,000,000.00 Deposit on Contract
Collections to Customers (5,300,000.00) Claims against Carrier Damages
Accounts Writtenoff (35,000.00) IOUs from Employees
Sales Returns (40,000.00) Cash Advances to affiliates
Allowonces to Customer for shipping (25,000.00) Adavnces to Suppliers
Total Accounst Receivables 1,200,000.00 Accounts Receivable

>Subscription Receivable sshould be deducted to Equity *Subscribed Share Capital

>Deposit on Contract - Non Current Assets - (Presented as Other Non Current Asset)
>advances to Affiliates - Longterm investment thus NON CURRENT ASSETS

Problem 4-3
FOB Destination, Freight Collect
Accounst Receivable 500,000.00
Freight Out 10,000.00
Sales 500000
Allowances For Freight Charge 10000

Cash 475,000.00
Allowance For Freight Charge 10,000.00
Sales Discount 15,000.00
Accounts Receivables 500,000.00
FOB Shipping Point, Freight Collect
Accounts Receivables 500,000.00
Sales 500000

Cash 485,000.00
Sales Discount 15,000.00
Accounts Receivables 500000

Problem 4-4

ESTIMATION OF DOUBTFUL ACCOUNT

Problem 5-1

A. Percent of Sales
Doubtful Account Expense 75,000.00
Allowance for Doubtful Account 75000

ADA, End 95000

Doubtful Accoun Expense 75000

B. Gross Sale
Doubtful Account Expense 50,000.00
Allowance for Doubful Account 50000

ADA, End 70000

Doubtful Account Expense 50000

C. Aging of Receivables
Doubtful Account Expense 60,000.00
Allowance For Doubtful Acoount 60000

ADA, End 80000

Doubtful Account Expense 60000

D. Percent of Receivables
Doubful Account Expense 30,000.00
Allowance for Doubful Account 30000

ADA, End 50000

Doubtful Account Expense 30000

Problem 5-2

Accounts Receivable 7,000,000.00

 Sales 7000000

Cash 2,450,000.00
Sales Discount 50,000.00
Accounts Receivable 2500000

Cash 3,900,000.00
Accounst Receivable 3900000

Allowance For Doubful Account 30,000.00

Accounts Receivable 30000

Accounts Receivable 10,000.00

Allowance For Dountful accounts 10000

Cash 10,000.00
Accounts Receivable 10000

Sales Return Allowances 70,000.00

Accounts Receivable 70000

Problem 5-3
Accounts receivable Allowance for Doubtful Acc
Beg 2000000 720000 60,000.00 100000
7200000 5940000 10000
80000 60,000.00 110000
60000 50,000.00
10000 10000 70000
9210000 6810000 120000
2400000

Accounts Receivable 2400000

Allowance for DA -120000
Allowance for SD -10000
Net Realizable Value 2270000

Problem 5-4

Accounts receivable Allowance for Doubtful Acc

600000 2500000 20,000.00 25000
2600000 20000 5000
55000
5000 5000 50000
20,000.00 80000
 3205000 2580000 60,000.00
625000

Credit Sales 2600000 Net Credit Sales 2500000

Sales Discount -45000 Percent of DAE 0.02
Sales Returns -55000 Doubftful Account Expense 50000
Net Credit Sales 2500000

Accounts Receivable 625000

Allowance For DA -60000
Net Realizable Value 565000

Problem 5-5

Accounts Receivable Allowance for Doubtful Acc

1500000 8000000 55000 60000
7935000 90000 15000
15000 25000 55000 75000
30000 20000
55000 30000
9450000 8200000 50000
1250000

Accounts Receivable 1250000

Allowance for DA -50000
Net Realizable Value 1200000

Problem 5-6
Allowance for Doubtful Acc Accounts Receivable 3270000
235000 170000 Allowance for Doubtful Acc -280000
30000 30000 Net Realizable Value of A/R 2990000
265000 200000
65000
345000 DAE

280000

Problem 5-7
Year Credit Sales Write Off Recover DA Expense
2015 1500000 15000 2
2016 2200000 40000 2000
2017 3000000 50000 3000
2018 3300000 65000 5000
2019 4000000 88000 10000
Notes Receivables

Problem 6-1 Problem 6-2

2019 Face value of Note
Jan 1 Cash 1000000 Selling price
Notes Receivable 6000000 Discount on Notes
Land 5,000,000.00
Gain on Sale of Land 2,000,000.00 Jan 1 2019
Notes Receivable
31-Dec Interest Receivable 720000 Sale
Interest Revenue 720,000.00 Discount on Sale

2020 31-Dec
31-Dec Interest Receivable 806400 Cash
Interest Revenue 806,400.00 Discount on Notes
Notes Receivable
2021 Interest revenue
1-Jan Cash 7526400
Notes Receivable 6,000,000.00 31-Dec-20
Interest Receivable 1,526,400.00 Cash
Discount on Notes
Notes Receivable
Interest Revenue

Problem 6-3

Face value of Note 900000 Present Value of Note 720540

Present Value 720540 Cash Received 100000
Discount on Notes 179460 Selling Price 820540
Cost of Equipment 700000
Gain on Sale 120540
Jan 1 2019
Cash 100000 Annual
Notes Receivable 900000 Jan 1 2019
Equipment 700000 820,540.00 31-Dec-19 300000
Gain on Sale 120540 31-Dec-20 300000
Discount On notes 179460 31-Dec-21 300000

Dec-19 Statement Of Financial Position: Dec 2019

Cash 300000
Discount on Notes 86465 Notes Receivable
Notes Receivable 300000 Unamortized Discount
Interest Revenue 86465 Amortized Cost
 Dec-20
Cash 300000
Discount on Notes 60841
Notes Receivable 300000
Interest Revenue 60841

Dec-21
Cash 300000
Discount on Notes 32154
Notes Receivable 300000
Interest Revenue 32154

Problem 6-4
Annual Interest
Face value of notes 2500000 31-Dec-19
PV of Notes (3.22) 1995000 31-Dec-20 500000 159600
Discount On Notes 505000 31-Dec-21 500000 132368
31-Dec-22 500000 102957
31-Dec-19 31-Dec-23 500000 71194
Notes Receivable 2500000 31-Dec-24 500000 38881
Sales/Equipment 1995000
Discount on Notes 505000 SFP Dec 31, 2020 Total
Notes Receivable 2000000
31-Dec-20 Unamortized Discount 345400
Cash 500000 Amortized Cost 1654600
Discount on Notes 159600
Notes Receivable 500000
Interest Revenue 159600

Problem 7-3
Nominal Effective
Principal 3000000 1-Jan-19
Direct Origination fee 260300 31-Dec-19 240000 189618
origination fees received -100000 31-Dec-20 240000 186595
Carrying Amount Jan 1, 2019 3160300 31-Dec-21 240000 183487

Loan Receivable 3000000 Problem 7-4

Cash 3000000 Principal 5000000
Direct Origination fees 457500
Unearned Interest/Premium 160300 Origination fees Received -200000
Cash 160300 Carrying Amount Jan 1 2019 5257500
31-Dec-19
Cash 240000 Nominal Effective
Unearned Interest/Premium 50382 1-Jan-19
 Interest Income 189628 31-Dec-19 500000 420600
31-Dec-20 31-Dec-20 500000 414248
Cash 240000 31-Dec-21 500000 407652
Unearned Interest/Premium 53405 31-Dec-19
Interest Income 186595 Cash
31-Dec-21 Unearned Interest/Premium
Cash 3240000 Interest Income
Unearned Interest/Premium 56513 31-Dec-20
Interest Income 183487 Cash
Loan Receivable 3000000 Unearned Interest/Premium
Interest Income
31-Dec-21
Cash
Problem 7-5 Unearned Interest/Premium
Principal 6000000 Interest Income
Accrued Interest 2Mx8%x3 480000 Loan Receivable
Total Carrying A/R + Interest 6480000
31-Dec-19
Present Value: at 8% Loan Receivable Dec 31, 2019
2020 0.93 930000 Allowance for Impairment Loss
2021 0.86 1720000 Carrying Amount, Dec 31, 2019
2022 0.79 2370000 5020000
Impairment Loss/Bad Dedts 1460000 31-Dec-20
Cash 1000000
31-Dec-19 Loan Receivable
Impaiment Loss/ Bad Debts 1460000
Accrued Interest Receivable 480000 Allow. for Impairment Loss 401600
Allowance for Impairment Loss 980000 Interest Income

31-Dec-20 Loan Receivable Dec 31, 2020

Cash 1000000 Allowance for Impairment Loss
Loan Receivable 1000000 Carrying Amount Dec 31, 2020

Unearned Interest 31-Dec-21

Cash 2000000
Loan Receivable

Allow. For Impairment Loss 353728

Interest Income

Loan Receivable Dec 31, 2021

Allowance for Impairment Loss
Carrying Amount Dec 31, 2021

Interest Income
Cash 3000000
Loan receivable
Allow. for Impaiment Loss -224672
Interest Income
ade Accoiunts Receivable 775,000.00
ade Notes Receivables 100,000.00
tallment Receivables 300,000.00
vances to Suppliers 150,000.00
aim From Insurance Entity 15,000.00
bscription Receivable 60days 300,000.00
crued Interest Receivable 10,000.00
Receivables 2000000
Customers Credit Balance 30000
Advances From Customers 20000

bscrition receivables 150000

posit on Contract 120000
aims against Carrier Damages 60000
Us from Employees 10000
sh Advances to affiliates 100000
avnces to Suppliers 50000
Accounts Receivable 490000

FOB Destination, Freight Prepaid

Accounts Receivable 500000
Freight Out 10000
Sales 500000
Cash 10000

Cash 485000
Sales Discount 15000
Accounts Receivables 500000
FOB Shipping Point, Freight PrePaid
Accounts Receivables 510000
Sales 500000
Cash 10000

Cash 495000
Sales Discount 15000
Accounts Receivables 510000

Accounts Receivable Allowance for Doubtful A

1000000 2500000 30000 40000
 7000000 3900000 10000
10000 30000 30000 50000
10000 ADA, B4 Adj. 20000
70000
8010000 6510000
1,500,000.00

Recquired Allowance: ADA, End Applied Rate 40000

(1500000 x 4%) 60000 1000000
Less: Allowance for DA Before adj. -20000 (40000/100000 4%
Doubtful Account Expense 40,000.00

Adj. Entry:
Doubful Account Expense 40000
Allowance For DA 40000

Adjusted Accounts Receivable 1500000

Less: Allowance for DA, End -60000
Net Realizable Value of A/R 1,440,000.00

Doubtful Account Exp

70000

Allowance for Sales Discount

10000

Doubftful Account Expense

50000
Doubtful Account Expense
30000
ce value of Note 600000 Selling Price 540000
540000 Cost of computer 400000
count on Notes 60000 Gain on Sale of Computer 140000

tes Receivable 600000 Dec-19 600000 30,000.00

540000 Dec-20 400000 20000
Discount on Sale 60000 Dec-21 200000 10000

Annual N Unamort D
200000 Current Notes 200000 20000
count on Notes 30000 Non Current Notes 200000 10000
Notes Receivable 200000
nterest revenue 30000

200000
count on Notes 20000
Notes Receivable 200000
nterest Revenue 20000

Interest Present Value

720540
86465 507005
60841 267846
32154 -

cial Position: Dec 2019

Total Current Non Current
600000 300000 300000
92995 60841 32154
507005 239159 267846
Present value Problem 6-5
1995000 Face Value of Note 400000 Present Value of Note
1654600 PV of Note 284720 Cash Received
1286968 Discount on Notes 115280 Selling Price
889925
461119 Jan 1 2019
0 Cash 125000
Notes Receivable 400000
Current Non Current Sales 409720
500000 1500000 Discount 115280
132368 213032
367632 1286968 31-Dec-19
Interest receivable 34166
Interest revenue 34166

Problem 7-6
Amortization Carrying Value Principal Payment
3160300 Accrued Interest in 2018 7.5x12%
50382 3109918 Total carrying Amount 2019
53405 3056513 Present Value At 12%
56513 3000000 Dec 31, 2020 .89
Dec 31, 2021 .80
Dec 31, 2022 .71
Loan Receivable 5000000 Dec 31, 2023 .64
Cash 5000000 Impaiment Loss

Unearned Interest/Premi 257500 31-Dec-19

Cash 257500 Impaiment Loss
Amortization Carrying Value Allow. Impairment Loss
5257500 Accrued Interest
 79400 5178100
85752 5092348 Loan Receivable
92348 5000000 Allowance for Impairment Loss
Total Carrying Amount Dec 2019
500000
st/Premium 79400 31-Dec-20
420600 Cash
Allow. For Bad Debts
500000 Loan Receivable
st/Premium 85752 Interest Income
414248
Loan Receivable
5500000 Allowance For Bad Debts
st/Premium 92348 Carrying Amount Dec 31, 2020
407652
5000000 31-Dec-21
Cash
Allow. for Bad Debts
6000000 Loan Receivable
-980000 Interest Income
5020000
Loan Receivable
Allowance For Bad Debts
Carrying Amount Dec 31, 2021
1000000
31-Dec-22
Cash
401600 Allow. For Bad Debts
Loan Receivable
5000000 Interest Income
-578400
4421600 Loan Receivable
Allowance For Bad Debts
Carrying Amount Dec 31, 2022

2000000 31-Dec-23
Cash
Allow. For Bad Debts
353728 Loan Receivable
Interest Income
3000000
-224672 Interest Income
2775328

222026 -2646
3000000

-224672
200000
-50000
150000

100000
-40000
60000
Amortized Cost
180000
190000
resent Value of Note 284720 Selling price 409720
ash Received 125000 Carrying Value 350000
409720 Gain on Sale 59720

Interest Present Value

1-Jan-19 July 14, 2679
Dec 31 2019 34166 January 28, 2773
Dec 31 2020 38266 November 4, 2877
Dec 31 2021 42847 February 27, 2995

Problem 7-7
7500000
st in 2018 7.5x12% 900000 December 31, 2020 0
Amount 2019 8400000 December 31, 2021 0
December 31, 2022 360000 0.772
445000 December 31, 2023 360000 0.708
800000 December 31, 2024 360000 0.65
1420000 December 31, 2025 360000 0.596
2560000 5225000 Principal payment 4000000 4360000
3175000 Total Present Value

Carrying Amount of Loan 4000000

3175000 Present Value of Loan 3365360
2275000 Impairment Loss 634640
900000
 January 1, 2019
7500000 Loan Receivable 4000000
mpairment Loss 2275000 Cash 4000000
Amount Dec 2019 5225000 December 31, 2019
Cash 360000
Interest Income 360000
500000
627000 Impairment Loss 634640
500000 Allowance for Bad Debts 634640
627000
December 31, 2020
7000000 Allowance for Bad Debts 302882
1648000 Interest Income 302882
nt Dec 31, 2020 5352000
Loan Receivable 4000000
Allowance for Bad Debts 331758
1000000 Carraying Amount Dec 31, 2020 3668242
642240
1000000 December 31, 2021
642240 Allowance for Bad Dedts 331758
Interest Income 331758
6000000
1005760 Problem 7-8
nt Dec 31, 2021 4994240 January 1, 2019
Loan Receivable 3000000
Cash 3000000
2000000
599309 Cash 270000
2000000 Interest Inciome 270000
599309
STAGE 1 LOW CREDIT RISKS
4000000 Carrying amount 3000000
406451 Probability of Collection 0.9
nt Dec 31, 2022 3593549 Expected Cash Flow 2700000
PV Factor 9% for 5 periods 0.65
Present Value of Expected Cash flow- Dec 2019 1755000
4000000
599309 Carrying amount 3000000
4000000 Present Value of Expected Cash Flow 1755000
599309 Expected Credit Loss 1245000
Probability of Default within 12 months 0.02
431225.856 12-Month Expected Credit Loss 24900

Loan Receivable 3000000

Allowance for Bad Debts 24900
Carrying Amount Dec 31, 2019 2975100

Impairment Loss 24900

Allowance for Bad Debts 24900

STAGE 2 SIGNIFICANT INCRESE IN CREDIT RISKS

Cash 270000
Interest Income 270000

Carrying Amount 3000000

Probability of Collection 60% 0.6
Expected Cash Flow 1800000
PV factor of 9% for 4 periods 0.71
Present Value of Expected Cash Flow 2020 1278000

Loan Recdeivable 3000000

PV of Loan 1278000
Expected Credit Loss 1722000
Probability of Default for 4 years 30% 0.3
Lifetime Expected Credit Loss 516600
Unadjusted Allowance for Bad Debts 2019 24900
Impairment Loss/Bad Debts Expense 491700

Impairment Loss 491700

Allowance For Bad Debts 491700

Loan Receivable 3000000

Allowance for Bad Debts 516600
Carrying Amount Dec 31, 2020 2483400

STAGE 3
Cash 270000
Interest Income 270000

Loan Receivable 3000000

Probability of Collection 40% 0.4
Expected Cash Flow 1200000
Present Value of Expected Cash Flow 3 years 0.77
Present Value of Expected Cash Flow 924000

Loan Receivable 3000000

PV of Loan 924000
Lifetime Expected Credit Loss 2076000
Unadjusted Allowance for Bad Debts 2020 516600
Impairment Loss 1559400
 Impairment Loss 1559400
Allo3wance for Bad Debts 1559400

Allowance for Bad Debts 1800000

Loan Receivable 1800000

Presentation on SFP
Loan Receivable 1200000
Allowance for Bad Dets (2076000-1800000) 276000
Carrying Amount Dec 31, 2021 924000

Carrying Amount Dec 31, 2021 924000

Interest rate 0.09
Interest Income 2022 83160

Allowance for Bad Dets 83160

Interest Income 83160

Carrying Amount Dec 31, 2021 924000

Interest Income 83160
Carrying Amount Dec 31, 2022 1007160
Interest Income 90644
Carrying Amount 2023 1097804
Interest Income 102196
Carrying Amount 2024 1200000

Cash 1200000
Loan Receivable 1200000

Problem 8-9

1-Jul Cash 680000

Receivable from Factor 80000
Loss From Factoring/ Service fee 40000
Accounts Receivable 800000

15-Jul Sales Returns 20000

Receivable from Factor 20000

31-Jul Cash 60000

Receivable from Factor 60000
 Problem 8-10
JUNE
1 Accounts Receivable 500000
Sales 500000

3 Cash 340000
Sales Discount 10000
commission fee 25000
Receivable from Factor 125000
Accounts Receivable 500000

9 Sales Returns 50000

Sales Discount 1000
Receivable from Factor 49000

11 NO ENTRY FOR Collection of A/R

15 Cash 76000
Receivable from Factor 76000

PROBLEM 8-11

23-Jul Cash 750000

Commission Fee 50000
Receivable from Factor 200000
Accounts Receivcable 1000000

28-Jul Sales Returns 50000

Receivable from Factor 50000

31-Aug Cash 150000

Receivable from factor 150000

Probkem 8-12

June-22 Cash 150000

Commission Fee 10000
Receivable from Factor 40000
Accounts Receivable 200000

31-Dec Accounts Receivable - Assigned 300000

Accounts Receivable 300000

Cash 225000
Service Charge 15000

Notes Payable 240000

Uncollectible Account Expense 35000

Allowance for Uncollectible 35000

A/R

October 26, 2392 FEE 180000

HOLDBACK 300000
INTEREST 133150
RECEIVED
Present V

277920
254880
234000
2598560

3365360
 31-Dec-22
Cash 360000
Interest Income 360000

31-Dec-23
Cash 360000
Interest Income 360000

31-Dec-24
Cash 360000
Interest Income 360000

31-Dec-25
Cash 4360000
Interest Income 360000
Loan Receivable 4000000
 98802.396

A/R Factored 800000

Factoring Fee 40000
Factors Witheld 80000 120000
Cash Received from Factoring 680000
problem 8-13 3000000

Cash 2250000
Loss From Factoring 350000
Receivable from Factor 300000
Allowance for Uncollectible 100000
Accounts Receivable

Accounts Receivable Factored 3000000

Less: Commission Fees 450000
Factors Holdback 300000 750000
Cash Received From Factoring 2250000
 Accounts Rerceivable 3000000
Commission Fee 450000
Net Sales Price 2550000
Required Allowance 1.3m X5% 65000 Carrying Amount of A/R Factored 2900000
Less: Allowance, Jan 1 -30000 Loss From Factoring 350000
Doubful Account expense 35000
A/R Factored 3000000
Collection by Bank 2500000
Balance Dec 31, 500000

Receivable fromn Factor 300000

Required holdback 10% of 500,000 -50000
Remmittance from Factor 250000
6000000
Cash 250000
Receivable from Factor 250000

613150
5386850
3000000
INVENTORY VALIX
PROBLEM 10-4
Beg Bal 90 units 1000 90000
PERPETUAL INVENTORY SYSTEM PERIODIC INVENTORY SYSTEM
1 Merchandise Inventory 800000 1 Purchases
Accounts Payable 800000 Accounts Payable

2 Accounts Payable 50000 2 Accounts Payable

Merchandise Inventory 50000 Purchases Returns

3 Accounts Payable 600000 3 Accounts Payable

Cash 600000 Cash

4 Accounts Receivable 1580000 4 Accounts Receivable

Sales 1580000 Sales

Cost of Goods Sold 790000

Merchandise Inventory 790000

5 Sales Returns 40000 5 Sales Returns

Accounts Receivable 40000 Accounts Receivable

Merchandise Inventory 20000

Cost of Goods Sold 20000

6 Cash 1360000 6 Cash

Accounts Receivable 1360000 Accounts Receivable

7 MEMO ENTRY 7 Merchandise Inventory, End

Income Summary
Merchandise Ineventory per BOOK 70000
Phyical Count At Year END 60000 Income Summary
Inventory Shortage 10000 Merchandise Inventory

Merchandise Inventory, Beg

COST OF SALES 770000 Add: Purchases
Inventory Shortage 10000 Less: Purchases Returns
ADJUSTED COST OF SALES 780000 Less: Merchandise Inventory, End
COST OF SALES

Prob 10-6
GRoss method Net Method
1 Purchases 4750000 1 Purchases
Accounts Payable 4750000 Accounts Payable
 2 Freight - In 250000 2 Freight - In
Cash 250000 Cash

3 Accounts payable 3717000 3 Accounts Payable

Cash 3684000 Cash
Purchase discounts 33000
Accounts Payable
4 no entry Purchase Discount Lost
Cash
5 Merchandise Inventory 1000000
Income summary 1000000 4 Purchase Discount Lost
Accounts Payable

5 Merchandise Inventory
Income summary

Problem 10-7
GROSS METHOD NET METHOD
1 Merchandise Inventory 1000000 1 Merchandise Inventory
Accountys Payable 1000000 Accountys Payable

2 Accounts Payable 50000 2 Accounts Payable

Cash 50000 Cash

3 Accounts Payable 800000 3 Accounts Payable

Cash 784000 Cash
Cost of Sales 16000
4 Accounts Payable
4 Accounts Payable 150000 Purchase Discount Loss
Cash 150000 Cash

5 Accounts Receivable 1200000 5 Accounts Receivable

Sales 1200000 Sales

Cost of Sales 700000 Cost of Sales

Merchandise Inventory 700000 Merchandise Inventory

Problem 10-8

1
2 no entry

3 Merchandise Inventory 30000

Cash 30000

4 Cash 90000
Merchandise Inventory 90000

5 Cash 140000
Merchandise Inventory 140000
 Problem

800000
800000

50000
50000

600000
600000

1580000
1580000

40000
40000

1360000
1360000

60000
60000

90000
90000

90000
800000
50000 750000
nventory, End 60000
780000

4655000
4655000
 250000
250000

1617000
1617000

2058000
42000
2100000

20000
20000

981000
981000

980000
980000

50000
50000

784000
784000

146000
4000
150000

1200000
1200000

686000
686000