WorksheetsACCTG 26 MIDTERM EXAM
Total questions: 25
Worksheet time: 1hrs 15mins
Riri Company provided the following information for the current year:
Account Receivable on January 1 1,300,000
Credit Sales 5,300,000
Collection from customers, excluding recovery 4,750,000
Accounts written off 125,000
Collection of accounts written off in prior year (customer credit was not established) 25,000
Estimated uncollectible receivables per aging of receivables at December 31 165,000
What is the balance of accounts receivable, before allowance for doubtful accounts on December 31?
1,725,000
1,850,000
1,950,000
1,990,000
Jojo Company provided the following data for the current year:
Accounts Receivable, January 1 650,000
Credit Sales 2,700,000
Sales Returns 75,000
Accounts written off 40,000
Collections from customers 2,150,000
Estimated future sales returns at December 31 50,000
Estimated uncollectible accounts at 12/31 per aging 110,000
What is the cost of accounts receivable on December 31?
1,200,000
1,125,000
1,085,000
925,000
Mai2 Company reported the following information at year-end:
Trade accounts receivable 930,000
Allowance for doubtful accounts (40,000)
Claim against the shipper for goods lost in transit in November 80,000
Selling price of unsold goods sent by Mai2 on consignment at 130% of the cost and not included in Mai2’s ending inventory 260,000
Security deposit on the lease of warehouse used for storing some inventories 300,000
What amount should be reported as trade and other receivables under current assets at year-end?
970,000
1,200,000
1,240,000
1,500,000
Famela Company provided the following information relating to current operations:
Accounts Receivable, January 1 2,000,000
Accounts Receivable collected 10,400,000
Cash sales 2,000,000
Inventory, January 1 3,800,000
Inventory, December 31 3,600,000
Purchases 8,000,000
Gross Margin on Sales 4,200,000
What amount should be reported as accounts receivable on December 31?
8,200,000
6,200,000
2,000,000
4,200,000
Seven Company provided the following information during the first year of operations:
Total merchandise purchases for the year 6,000,000
Merchandise in inventory on December 31 1,200,000
Collections from customers 4,000,000
All merchandise was marked to sell at 50% above cost. All sales are on credit basis and all receivables are collectible. What amount should be reported as accounts receivables on December 31?
1,000,000
3,840,000
5,000,000
3,200,000
Gemini Company started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off P 50,000 of uncollectible accounts. Further analysis showed that merchandise purchased amounted to P 9,000,000 and ending merchandise inventory was P 1,500,000. Goods were sold at 50% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to P 6,000,000. What is the amount of sales on account?
10,500,000
9,000,000
12,000,000
8,400,000
1. Gemini Company started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off P 50,000 of uncollectible accounts. Further analysis showed that merchandise purchased amounted to P 9,000,000 and ending merchandise inventory was P 1,500,000. Goods were sold at 50% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to P 6,000,000. What is the net realizable value of accounts receivable at year-end?
1,980,000
1,930,000
2,580,000
2,400,000
Rain Company used the allowance method of accounting for uncollectible accounts. During the current year, the entity charged P 700,000 to bad debt expense and wrote off accounts receivable of P 900,000 as uncollectible. What was the decrease in working capital?
900,000
700,000
100,000
0
Oracle Company prepared an aging of accounts receivable on December 31 and determined that the net realizable value of the accounts receivable was P 2,500,000.
Allowance for doubtful accounts on January 1 380,000
Accounts written off as uncollectible 330,000
Accounts receivable on December 31 2,800,000
Uncollectible accounts recovery 50,000
What amount should be recognized as doubtful accounts expense for the current year?
230,000
200,000
150,000
100,000
Master Company provided the following accounts abstracted from the unadjusted trial balance at year-end:
Accounts Receivable 5,000,000 debit
Allowance for doubtful accounts 40,000 debit
Net credit sales 20,00,000 credit
The entity estimated that 3% of the gross accounts receivable will become uncollectible. What amount should be recognized as the ending balance of allowance for doubtful accounts for the current year?
110,000
150,000
190,000
600,000
At the beginning of current year, Jassie Company had a credit balance of 260,000 in the allowance for uncollectible accounts. Based on past experience, 4% of credit sales would be uncollectible. During the current year, the entity wrote off P 325,000 of uncollectible accounts. Credit sales for the year totaled P 8,000,000. What amount should be reported as uncollectible accounts expense for the year?
320,000
180,000
255,000
440,000
At the beginning of the current year, Jassie Company had a credit balance of 260,000 in the allowance for uncollectible accounts. Based on past experience, 4% of credit sales would be uncollectible. During the current year, the entity wrote off P 325,000 of uncollectible accounts. Credit sales for the year totaled P 8,000,000. What amount should be reported as allowance for doubtful accounts at year-end?
115,000
180,000
255,000
440,000
Lame Company provided the following data for the current year:
Allowance for doubtful accounts-January 180,000
Sales 9,500,000
Sales returns and allowances 800,000
Sales discounts 200,000
Accounts written off as uncollectible 200,000
The entity provided for doubtful accounts expense at the rate of 4% of net sales. What amount should be reported as doubtful account expense?
340,000
425,000
475,000
415,000
Lame Company provided the following data for the current year:
Allowance for doubtful accounts-January 180,000
Sales 9,500,000
Sales returns and allowances 800,000
Sales ounts 200,000
Accounts written off as uncollectible 200,000
The entity provided for doubtful accounts expense at the rate of 4% of net sales. What amount should be reported as allowance for doubtful accounts on December 31?
415,000
320,000
405,000
605,000
On January 1, 2019, OOTD Company sold goods to Fashion Company. Fashion signed a non-interest bearing note requiring payment of P 600,000 annually for seven years. The first payment was made on January 1, 2019. The prevailing rate of interest for this type of note at the date of issuance was 10%.
PVOA of 1 at 10% for 6 periods 4.36
PVOA of 1 at 10% for 7 periods 4.87
What amount should be recorded as sales revenue in January 2019?
3,216,000
2,922,000
2,616,000
2,142,000
On January 1, 2019, OOTD Company sold goods to Fashion Company. Fashion signed a non-interest bearing note requiring payment of P 600,000 annually for seven years. The first payment was made on January 1, 2019. The prevailing rate of interest for this type of note at the date of issuance was 10%.
PVOA of 1 at 10% for 6 periods 4.36
PVOA of 1 at 10% for 7 periods 4.87
What is the carrying amount of the note receivable on January 1, 2019?
3,600,000
2,616,000
3,000,000
2,322,000
On January 1, 2019, OOTD Company sold goods to Fashion Company. Fashion signed a non-interest bearing note requiring payment of P 600,000 annually for seven years. The first payment was made on January 1, 2019. The prevailing rate of interest for this type of note at the date of issuance was 10%.
PVOA of 1 at 10% for 6 periods 4.36
PVOA of 1 at 10% for 7 periods 4.87
What is the interest income for 2019?
300,000
232,200
261,600
360,000
On January 1, 2019, OOTD Company sold goods to Fashion Company. Fashion signed a non-interest bearing note requiring payment of P 600,000 annually for seven years. The first payment was made on January 1, 2019. The prevailing rate of interest for this type of note at the date of issuance was 10%.
PVOA of 1 at 10% for 6 periods 4.36
PVOA of 1 at 10% for 7 periods 4.87
What is the carrying amount of the note receivable on December 31, 2019?
3,600,000
3,000,000
2,277,000
2,877,600
On December 31, 2019, Chang Company sold a machine in the ordinary course of business to Dolly Company in exchange for a non-interest bearing note requiring ten annual payment of P 1,000,000. The entity made the first payment on December 31, 2020. The market interest for a similar note at date of issuance was 8%.
PVOA of 1 at 8% for 9 periods 6.25
PVOA of 1 at 8% for 10 periods 6.71
What is the amount of sales revenue?
7,250,000
5,000,000
6,710,000
8,000,000
On December 31, 2019, Chang Company sold a machine in the ordinary course of business to Dolly Company in exchange for a non-interest bearing note requiring ten annual payment of P 1,000,000. The entity made the first payment on December 31, 2020. The market interest for a similar note at date of issuance was 8%.
PVOA of 1 at 8% for 9 periods 6.25
PVOA of 1 at 8% for 10 periods 6.71
On December 31, 2019, what is the carrying amount of the note receivable?
4,500,000
4,600,000
6,710,000
3,420,000
On December 31, 2019, Chang Company sold a machine in the ordinary course of business to Dolly Company in exchange for a non-interest bearing note requiring ten annual payment of P 1,000,000. The entity made the first payment on December 31, 2020. The market interest for a similar note at date of issuance was 8%.
PVOA of 1 at 8% for 9 periods 6.25
PVOA of 1 at 8% for 10 periods 6.71
What amount should be reported as interest income for 2020?
536,800
625,000
720,000
500,000
On December 31, 2019, Chang Company sold a machine in the ordinary course of business to Dolly Company in exchange for a non-interest bearing note requiring ten annual payment of P 1,000,000. The entity made the first payment on December 31, 2020. The market interest for a similar note at date of issuance was 8%.
PVOA of 1 at 8% for 9 periods 6.25
PVOA of 1 at 8% for 10 periods 6.71
What is the carrying amount of the note receivable on December 31, 2020?
5,250,000
6,750,000
8,000,000
7,246,800
On January 1, 2019, Emma Company sold equipment with a carrying amount of P 4,800,000 in exchange for a P 6,000,000 noninterest-bearing note due on January 1, 2022. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2019 was 10%. The present value of 1 at 10% for three periods is 0.75. what amount should be reported as interest income for 2019?
900,000
450,000
500,000
600,000
On January 1, 2019, Emma Company sold equipment with a carrying amount of P 4,800,000 in exchange for a P 6,000,000 noninterest bearing note due on January 1, 2022. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2019 was 10%. The present value of 1 at 10% for three periods is 0.75. What amount should be reported as gain or loss on sale of equipment?
300,000 loss
300,000 gain
1,200,000 gain
2,700,000 gain
At the beginning of the current year, Jean Company purchased from Carme Company a P 2,000,000, 8%, five-year note that required five equal annual year-end payments of P 500,900. The note was discounted to yield a 9% rate to Jean Company. What is the total interest revenue earned by Jean Company over the life of the note?
504,500
556,0000
800,000
900,000
