Search CliffsNotes
Accounts Receivable - Exercises - Ques
.doc
tions
Download Helpful Unhelpful
Home / Accounting
Practice Exercises-Cash & cash Equivalents
Problem 4-3
Affectionate Company sold merchandise on account for P500,000. The terms are 3/10. n/30.
The related freight charge amounted to P10,000. The account was collected within the discount
period.
Required:
Prepare journal entries to record the transactions under the following freight terms.
1. FOB destination and freight collect
Accounts Receivable 500,000
Freight-out 10,000
Sales 500,000
Allowance for Freight Charge 10,000
Cash 475,000
Sales Discount 15,000
Allowance for Freight Charge 10,000
Accounts Receivable 500,000
2. FOB Destination and freight prepaid
Accounts Receivable 500,000
Freight-out 10,000
Sales 500,000
Cash 10,000
Cash 485,000
Sales Discount 15,000
Accounts Receivable 500,000
3. FOB shipping point and freight collect
Accounts Receivable 500,000
Sales 500,000
Cash 485,000
Sales Discount 15,000
Accounts Receivable 500,000
4. FOB shipping point and freight prepaid
Accounts Receivable 510,000
Sales 500,000
Cash 10,00
Cash 495,000
Sales Discount 15,000
Accounts Receivable 510,000
Problem 4-4
Fiancee Company records sales return during the year as a credit to accounts receivable.
However, at the end of the accounting period, the entity estimates the probable sales return and
records the same by means of an allowance account.
The following transactions occurred in summary form:
1. Sale of merchandise on account, 2/10, n/30 4,000,000
2. Collection within the discount period 1,470,000
3. Collection beyond the discount period 1,000,000
4. Sales return granted 100,000
5. Sales return estimated at the end of the year 20,000
Required:
Prepare journal entries to record the transactions.
ENTRIES:
Account Receivable 4,000,000
Sales 4,000,000
Cash 1,470,000
Sales Discount 30,000
Accounts Receivable 1,500,000
Cash 1,000,000
Accounts Receivable 1,000,000
Sales Return and Allowances 100,000
Accounts Receivable 100,000
Sales Returns and Allowances 20,000
Allowance for Sales Return 20,000
COLLECTION:
Cash 2,470,000
Sales Discount 30,000
Sales Returns and Allowances 120,000
Accounts Receivable 2,600,000
Allowance for Sales Return 20,000
Problem 4-7
Raven Company started business in March 2020. Sales for the first year totaled P4,000,000.
The entity priced the merchandise to yield a 40% gross profit based on sales.
Industry statistics suggest 10% of the merchandise sold to customers will be returned.
The entity estimated sales returns based on the industry average. During the year, customers
returned goods with sales price of P300,000.
Required:
Prepare the journal entries to record sales, sales returns and the year-end adjusting entry for
estimated sales returns.
ENTRIES:
Accounts Receivable 4,000,000
Sales 4,000,000
Sales Return 300,000
Accounts Receivable 300,000
Sales Returns 100,000
Allowance for Sales Return 100,000
Problem 4-8
Valiant Company reported the following analysis of current receivables at year-end:
Trade AR 2,000,000
Allow. For doubtful accounts ( 100,000)
Claim against shipper for goods lost
In transit in November 300,000
Selling price of unsold goods sent by
Valiant on consignment at 150% of cost and
not included in ending inventory 600,000
Security deposit on lease of warehouse 200,000
Total 3,000,000
What total amount should be reported as current trade and other receivables?
Trade Receivables 2,000,000
Allowance for doubtful accounts (100,000)
Claim against shipper for goods lost in transit in November 300,000
Total current trade and other receivables 2,200,000
Page 3 of 5
Couldn't fetch data
You might also like
CERTAINTY OF OBJECTS LECTURE
B.docx
WEEK 2 LECTURE B CERTAINTIES 2:
BEYOND THE FIXED TRUST CERTAINTY OF
OBJECTS(FINAL CERTAINTY) If "the donor
did not intend the words to be imperative, or…
if the first taker was to have a discretionary
power of withdrawing any part of the subject
from the o
Queen Mary, University of London
LAW LLB
Notes & Loans Receivable -
Exercises.doc
ACCA104-Intermediate Accounting 1 Notes,
Loans Receivable SEATWORK THEORIES. 1.
On July 1 0f the current year, an entity
received a one-year note receivable bearing…
interest at the market rate. The face amount
of the note receivable and the entire amount
Bulacan State University, Malolos
ABM 101
C0C43F73-BABE-49DC-A888-
09E0F02C8664.jpeg
= Exercise 7-1 _ Subject: Source of Income
Analysis 18, B In each of the following cases,
determine whether there is 1 source o
whether the activity is income from propert…
or income from a business. - CASE 1 You
purchase a small offce building with space
Centennial College
ACCT 226
Extra Question_Current
Liabilities_.pdf
Accounting 1 AA015 Chapter 10: Accounting
for Liabilities CHAPTER 10: ACCOUNTING
FOR LIABILITIES - Current Liabilities
…
Question 1 Date Basic value ( notes) Interes
rate Maturity Period (month) 1st February
RM Matriculation
8,500 9% 10 1st Malacca College
April RM 7,200 8% 9 1st
JuneACC AA025
Bolck-chain slide.pptx
Faster and more Secure ledger entries using
Blockchain Technology Step 1 The Customer
goes to the ATM to withdraw Cash Step 6
Customer gets a notification that his…
transaction has been verified and he receives
Indiana
the cash StepUniversity, Bloomington
2 The customer creates request
BUS 304
SOAL RESPONSI UAS PTLF 2019.pdf
LABORATORIUM PERANCANGAN
FASILITAS TELEKOMUNIKASI FAKULTAS
REKAYASA INDUSTRI TELKOM UNIVERSITY
Jl. Telekomunikasi Gedung C-313…
Dayeuhkolot Bandung 40257 Telp.
Telkom University,
(022)7564108 Bandung
Ext.2212 e-mail:
IE 101
[email protected] I. Multiple Choice 1.
What is the 4th Process
CliffsNotes study guides are written by real teachers and professors, so no
matter what you're studying, CliffsNotes can ease your homework headaches
and help you score high on exams.
Quick Links Company
Literature Notes About CliffsNotes
Study Guides Contact us
Documents Do Not Sell My Personal Information
Homework Questions
Legal
Service Terms
Privacy policy
Copyright, Community Guidelines,
DSA & other legal resources
Honor Code
Disclaimer
CliffsNotes, a Learneo, Inc. business
© Learneo, Inc. 2025
Q+A
AI homework help
Explanations instantly
