PROBLEM 1

Papaya Company reported the “Receivables” account with a debit balance of P2,500,000 at year-end.
The allowance for doubtful accounts had a credit balance of P50,000 on same date.
Subsidiary details revealed the following:

Cash advance to subsidiary 400,000 NCA

Accounts receivable 875,000
Trade notes receivable 300,000
Installments receivable, normally due 1 year to two years 300,000
Customers’ accounts reporting credit balances arising from sales return (30,000)
Advance payments for purchase of merchandise 150,000 Adv to Suppliers
Customers’ accounts reporting credit balances arising from advance payments (20,000)
Claim from insurance entity 15,000
Subscriptions receivable due in 60 days 500,000
Accrued interest receivable 10,000
2,500,000

1. Compute the amount to be presented as “trade and other receivables” under current assets. 2,100,000
2. How much should be included as "trade and other payables"?(do not express in negative) 50,000

PROBLEM 2
Joker Company reported the following analysis of current receivables at year-end:
Trade accounts receivable 2,000,000
Allowance for doubtful accounts (100,000)
Claim against shipper for goods lost in transit in November 300,000
Selling price of unsold goods sent by Joker on consignment at 150% of cost and not included in 600,000
ending inventory Part of Inventory
Security deposit on lease of warehouse 200,000 Non current
Total 3,000,000
3. What total amount should be reported as current trade and other receivables? 2,200,000

PROBLEM 3
Jonell Company provided the following transactions affecting accounts receivable during the current year: AR ALLOW
Sales - cash and credit 6,000,000 3,900,000
Cash received from credit customers, all of whom took advantage of the discount feature of Cash 3,024,000
the credit terms 4/10,n/30 3,024,000 (3,150,000) Sales Discount126,000
Cash received from cash customers 2,100,000 A/R 3,150,000
Accounts receivable written off as worthless 50,000 (50,000) (50,000)
Credit memorandum issued to credit customers for sales returns and allowances 250,000 (250,000) Allow
Cash refunds given to cash customers for sales returns and allowances 20,000 AR
Recoveries on accounts receivable written off as uncollectible in prior periods not included in
cash received from credit customers 80,000 80,000 *No effect on AR AR
Balances on January 1 Allow
Accounts receivable 950,000 950,000
 Allowance for doubtful accounts 100,000 100,000 Cash
The entity provided for uncollectible accounts by crediting allowance for doubtful accounts in the amount of AR
P70,000 for the current year. 70,000
4. What amount should be reported as accounts receivable on December 31? 1,400,000
5. What amount should be reported as allowance for doubtful accounts on December 31? 200,000

PROBLEM 4
At the beginning, of current year, Jose Company reported the following: AR Allowance
Accounts receivable 2,000,000 2,000,000
Allowance for doubtful accounts 100,000 100,000 5%

Additional information for the current year:

1. Cash sales of the entity amount to P800,000 and represent 10% of gross sales. 7,200,000 Credits Sales
2. Ninety percent of the credit sales customers do not take advantage of the 5/10, n / 30 terms. (720,000)
3. Customers who did not take advantage of the discount paid P5,940,000. (5,940,000)
4. It is expected that cash discounts of P10,000 will be taken on accounts receivable outstanding at December (10,000) Allowance for discounts
31, 2019.
5. Sales returns amounted to P80,000. All returns were from charge sales. (80,000)
6. During the year accounts totaling P60,000 were written off as uncollectible. (60,000) (60,000)
Recoveries during the year amounted to P10,000. This amount is not included in the collections. 10,000
7. The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the outstanding
accounts receivable at year-end.
6. What amount should be reported as accounts receivable on December 31? 2,400,000
7. What amount should be reported as allowance for doubtful accounts on December 31? 120,000
8. What is the net realizable value of accounts receivable at year-end? 2,270,000

PROBLEM 5
Caveman Company maintains a checking account at the Commerce Bank. At July 31, selected data from the
ledger balance and the bank statement are shown below.
Cash in Bank DIT, Beg 7,000
Per Books Per Bank Book Debits 81,400
Balance, July 1 17,600 16,800 Bank Credits 79,000
July receipts 81,400 DIT, End 9,400
July credits 82,470
July disbursements 77,150 OC, Beg 6,200
July debits 74,756 Book Credits 77,150
Balance, July 31 21,850 24,514 Book Error 90
Analysis of the bank data reveals that the credits consist of P79,000 of July deposits and a credit Bank Debits 74,700
memorandum of P3,470 for the collection of a P3,400 note plus interest revenue of P70. The July debits per Bank error 100
bank consist of checks cleared P74,700 and a debit memorandum of P56 for printing additional company OC, End 8,460
checks.
You also discover the following errors involving July checks: (1) A check for P230 to a creditor on account
that cleared the bank in July was journalized and posted as P320. (2) A salary check to an employee for P255 Bank Balance 24,514
was recorded by the bank for P155. DIT, End 9,400
The June 30 bank reconciliation contained only two reconciling items: deposits in transit P7,000 and OC, End 8,460
 outstanding checks of P6,200. Error 100
8,460 9. What is the amount of outstanding checks on July 31 ? 25,354
9,400 10. What is the amount of Deposit in Transit on July 31 ?
25,354 11. What is the adjusted cash in bank on July 31?

PROBLEM 6
The following information was included in the bank reconciliation for Jeremiah Company for October and
November 2013:
Checks and charges recorded by bank in November, including a Checks and charges by bank in November 600,000
November service charge of P4,000 and NSF check of P20,000 600,000 Service charge in November -4,000
Service charge made by bank in October and recorded by depositor in NSF check in November -20,000
November 2,000 Checks paid by bank in November 576,000
Total credits to cash in all journals during November 620,000 Total credits to cash in all journals during November 620,000
Customer’s NSF check returned in October and redeposited in Service charge in October recorded in November -2,000
November (no entry made by depositor in either October or Checks issued by depositor in November 618,000
November) 40,000 Outstanding checks - October 31 230,000
Total checks to be paid by bank 848,000
Outstanding checks on October 31, 2013 that cleared in November 230,000 Checks paid by bank in November -576,000
272,000 12. What is the amount of outstanding checks on November 30,2013? Outstanding checks - November 30 272,000

Christy Company presented the followimg bank reconciliation for the month of 4,700,000
November of the current year: DIT 700,000
Balance per bank statement, November 30 3,600,000 OC 500,000 4,900,000
Add: Deposit in transit 800,000 DM 400000
4,400,000 CM 2,000,000
Less: Outstanding checks 1,200,000 3,300,000 DIT, Beg 800,000
Bank credit recorded in error 200,000 1,400,000 Book Debits 3,400,000
Balance per book, November 30 3,000,000 Bank Credits 3,500,000
DIT, End 700,000
Data per bank statement for the month of December follow: 4,900,000
December deposits (including note collected of P 2,000,000 for 3,900,000 OC, Beg 1,200,000
Christy) 5,500,000 Book Credits 3,100,000
December disbursements (including NSF, P350,000 and service Bank Debits 3,800,000
charge, P50,000) 4,400,000 OC, End 500,000
All items that were outstanding on November 30 cleared through the bank in December, including the bank
credit. In addition, checks amounting to P500,000 were outstanding and deposits of P700,000 were in transit
on December 31.

3,300,000 13. What is the cash balance per ledger on December 31 ?

3,400,000 14. What is the amount of cash receipts per book in December?
3,100,000 15. What is the amount of cash disbursements per book in December?