AP-5906_Receivables.xls

PROBLEM NO. 1

& eatles (ompany

Requirement No. 1

1)

Sales returns  Accounts  Accounts receivable receivable

92,000 92,000

2) 3)

None None, None, this this is only misposti misposting. ng. Hoever Hoever,, the the custo customers mers!! le"ger le"ger shoul" shoul" be be a"#ust a"#uste". e".

$)

Sales  Accounts  Accounts receivable receivable

%) ') ) *) 9)

$0,000 $0,000

Acco Accoun unts ts rece receiv ivab able le&N &Non ontr tra" a"e e  Accounts  Accounts receivable receivable

1'0, 1'0,00 000 0

(ash  Accounts  Accounts receivable receivable

12$,000

1'0,000 12$,000

None, None, this this is only a mispos misposting ting.. Hoever Hoever,, the the custom customers! ers! le"ger le"ger shou shoul" l" be be a"#ust a"#uste". e". None, None, this this is only a mispos misposting ting.. Hoever Hoever,, the the custom customers! ers! le"ger le"ger shou shoul" l" be be a"#ust a"#uste". e". None, None, this this is only a mispos misposting ting.. Hoever Hoever,, the the custom customers! ers! le"ger le"ger shou shoul" l" be be a"#ust a"#uste". e".

Requirement No. 2 

+na"#uste" balance  A"" -e"uct) -e"uct) a"#ustments a"#ustments No. 1 No. $ No. % No. ' A"#uste" balance, 12/31/0%

2,020,000 92,000) $0,000) 1'0,000) 12$,000) 1,'0$,000

PROBLEM NO. 2 -

7aul (ompany

(ash sales Sales on account see computations belo) otal sales (ost o sales 4ross proit

2003

2004

'*,000 ''',$00 3$,$00 %*,%20 1$',**0

10$,000 21,'00 *2%,'00 ''0,$*0 1'%,120

2005

12$,*00 9$*,000 1,02,*00 *%*,2$0 21$,%'0

(omputation o total sales rom 2003 to 200% *you may also use +(+ account otal accounts receivable, 12/31/0% otal collections rom 2003 to 200% otal 5ess total accounts receivable, 12/31/02 otal sales on account rom 2003 to 200%

Total

29',*00 2,33',000 2,'32,*00 2,10',2$0 %2',%'0

100 *0 20

132,000 2,20,$00 2,$02,$00 '',$00 2,33',000

(omputation o total cost o sales rom 2003 to 200% *you may also use +(+ account 6nventories, 12/31/02  A"" purchases or 2003 to 200% otal accounts payable, 12/31/0% $$,000 otal payments or purchases rom 2003 to 200% 2,0'0,000 otal 2,10$,000 5ess total accounts payable, 12/31/02 20,000 otal goo"s available or sale 5ess inventories, 12/31/0% otal cost o sales rom 2003 to 200%

1$',$00

2,0*$,000 2,230,$00 12$,1'0 2,10',2$0

Note: Since it was mentioned in the problem that the rate of gross profit on sales has remained constant for each of the three years, we can compute the GR from the total sales and cost of sales. (omputation o sales on account or 2003, 200$, an" 200%  Accounts receivable rom sales in 2003

 Accounts receivable, 12/31/0% (ollections

3,200 2003 200$ 200%

Sales on account

%9%,200 '0,000 *,000 ''',$00

2004

,200

'$,200 ',200 21,'00

2005

Total

112,*00

123,200

*3%,200 9$*,000

%9%,200 0,200 910,$00 2,33',000

Note: !ess than one year old " 2##$% &ne to two years old " 2##'% (wo to three years old " 2##).

PROBLEM NO. 3 -

4eorge (ompany

Requirement No. 1 *a  Alloance or "oubtul accounts per aging  A"" ba" "ebts ritten o otal 5ess alloance or "oubtul accounts, 1/1/0% 8ecovery o ba" "ebts ritten o -oubtul accounts epense or 200%

200,000 1*,%00 3*,%00 300,000 %0,000

3%0,000 3,%00

Requirement No. 1 *b  Accounts receivable, 12/31/0% 5ess alloance or "oubtul accounts per aging Net reali:able value

2,3%,000 200,000 2,1%,000

Requirement No. 1 *c Shoul" be per aging)  As recor"e" per client)  Alloance or "oubtul accounts, 1/1/0%  A"" "oubtul accounts epense or 200% 8ecovery o ba" "ebts ritten o otal 5ess ba" "ebts ritten o -ecrease in recor"e" alloance

200,000 300,000 1%0,000 %0,000 %00,000 1*,%00

312,%00 112,%00

Requirement No. 1 *c -ebit) Alloance or"oubtul accounts (re"it) -oubtul accounts epense

112,%00 112,%00

Requirement No. 2 a) 7%,000,000  3 ; 71%0,000 b) 7300,000 < 71%0,000 Notes receivable Accounts receivable Allo. or "oubtul accounts Accounts receivable&net Accounts receivable&others A"vances to oicers an" employees =ar>etable securities Allo. or "ecline in =C o mar>etable sec. 6nventories 7repayments otal curent assets 7roperty, plant an" eFuipment Accumulate" "epreciation 77D&net otal assets Accounts payable Accrue" epenses otal current liabilities on"s payable on" "iscount otal liabilities (ommon stoc> 8etaine" earnings, en". Net sales (ost o sales 4ross 7roit Eperating epenses Eperating income Ether income Ether charges Net income 4ain on sale o =aretable securities&S=( on" "iscount amorti:ation -ivi"en" income&S=( (o. common

3*,00 $,000 3',000 1,*00 $0,100 2,%0 3,*$0 13,000 1,3% 1%,$00 100 111,90$ 990,000 3$',000 %'',000 ',90$ '00 2,*00 2,*00 39,000 3,000 $00,000 311,102 12%,10$ 9$$,000 ''9,'00 2*0,$00 20,9* 23,'02 %,000 ',%00 1',3%2 1,000 1,000 1,000

B

3%,002 $,%00 $0,000 2,000 3*,000 & 1,000 10,%0 2%0 20,000 %00 113,302 1,910,000 3$$,000 1,%'',000 13,9%0 $,000 $,000 %,200 $00,000 3,000 $0%,200 200,000 10*,%0 9$*,000 ''%,000 2*2,$00 2'$,9* 1%,000 ,2%0 9,000 11,000 2,2%0 $,000 %00

C

3$,$02 %,000 $2,000 2,100 $0,000 %00 2,*$0 *,%00 1,12% 2$,'00 & 113,9%0 910,000 3%0,000 '0',000 '9,302 %,200 %,200 $,000 3'3,000 $3,000 3'3,000 10*,%0 111,102 9%0,000 ''1,000 2*%,000 20,000 1,'02 %,%00 ',000 1,000 1,%0 3,000 2,000

D

3%,%02 %,%00 3*,000 1,900 39,900 1,000 3,$0 $,2%0 & 1',000 900 112,*02 9$0,000 3%',000 %*$,000 '*,*02 2,*00 1,200 1,200 3'0,000 $0,000 3'*,200 30*,%0 9$,%0 9%2,000 ''$,$00 2*,000 2'$,000 1*,$00 ,%0 3,000 1$,000 & & 1,%00