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Module 2a - AR Recap

FM Co.'s carrying amount of accounts receivable at the end of the period is $204,000. This is calculated by taking the ending accounts receivable balance of $240,000 and subtracting the ending allowance for bad debts of $36,000. For TV Co., the carrying amount of accounts receivable at the end of the period is P313,000. This is calculated by taking the ending accounts receivable balance of P333,000 and subtracting the ending allowance for bad debts of P20,000.

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Chen Hao
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390 views

Module 2a - AR Recap

FM Co.'s carrying amount of accounts receivable at the end of the period is $204,000. This is calculated by taking the ending accounts receivable balance of $240,000 and subtracting the ending allowance for bad debts of $36,000. For TV Co., the carrying amount of accounts receivable at the end of the period is P313,000. This is calculated by taking the ending accounts receivable balance of P333,000 and subtracting the ending allowance for bad debts of P20,000.

Uploaded by

Chen Hao
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Acctg

Intermediate
Accounting 1
Acctg.

Accounts
Receivable/
Allowance for Bad
Debts
Acctg

 1. The following information pertains to FM Co.


Accounts rec., beg. 140,000 Carrying amount
Allowance for bad 18,000
debts, beg. Accounts Receivable xxx
Cash sales 450,000
Less: Allowance for
Credit sales 680,000 xxx
Bad Debts
Collection of AR, 570,000
including recoveries
Carrying Amount xxx
Write-offs 12,000
Recoveries 2,000
Bad debts expense 28,000

Requirement: Compute for carrying amount of


accounts receivable in FM Co.’s end-of-period
financial statements.
Acctg

 1. The following information pertains to FM Co.


Accounts rec., beg. 140,000 Accounts Receivable

Allowance for bad 18,000


debts, beg. Beg. xxx Collection +
Cash sales 450,000 Credit sales xxx xxx recovery
Credit sales 680,000 Recovery xxx xxx Write off
Collection of AR, 570,000
Ending xxx
including recoveries
Write-offs 12,000 Allowance for Bad Debts
Recoveries 2,000
Bad debts expense 28,000 xxx Beg.
Write off xxx xxx Bad debts
Requirement: Compute for carrying amount of xxx Recovery
accounts receivable in FM Co.’s end-of-period
financial statements. xxx Ending
Acctg

 1. The following information pertains to FM Co.


Accounts rec., beg. 140,000 Accounts Receivable

Allowance for bad 18,000


debts, beg. Beg. 140,000 Collection +
Cash sales 450,000 Credit sales 680,000 570,000 recovery
Credit sales 680,000 Recovery 2,000 12,000 Write off
Collection of AR, 570,000
Ending 240,000
including recoveries
Write-offs 12,000 Allowance for Bad Debts
Recoveries 2,000
Bad debts expense 28,000 18,000 Beg.
Write off 12,000 28,000 Bad debts
Requirement: Compute for carrying amount of 2,000 Recovery
accounts receivable in FM Co.’s end-of-period
financial statements. 36,000 Ending
Acctg

 1. The following information pertains to FM Co.


Accounts rec., beg. 140,000 Carrying amount
Allowance for bad 18,000
debts, beg. Accounts Receivable 240,000
Cash sales 450,000
Less: Allowance for
Credit sales 680,000 36,000
Bad Debts
Collection of AR, 570,000
including recoveries
Carrying Amount 204,000
Write-offs 12,000
Recoveries 2,000
Bad debts expense 28,000

Requirement: Compute for carrying amount of


accounts receivable in FM Co.’s end-of-period
financial statements.
Acctg

 2. TV Co. had accounts receivable of


Carrying amount
P150,000 and allowance for doubtful
account of P12,000 at the beginning of Accounts Receivable xxx
the period. During the period, TV Co.
made total sales of P1,000,000 (40% Less: Allowance for
Bad Debts xxx
were cash sales), collected P410,000
accounts (excluding recoveries), wrote-
off P9,000 accounts, recovered P2,000 Carrying Amount xxx
accounts, and recognized bad debts
expense of P15,000

Requirement: How much is the carrying amount


of accounts receivable at the end of the period.
Acctg

Accounts Receivable
 2. TV Co. had accounts receivable of
P150,000 and allowance for doubtful Beg. 150,000 Collection +
account of P12,000 at the beginning of Credit sales 600,000 412,000 recovery
the period. During the period, TV Co. Recovery 2,000 9,000 Write off
made total sales of P1,000,000 (40% Ending 333,000
were cash sales), collected P410,000
Allowance for Bad Debts
accounts (excluding recoveries), wrote-
off P9,000 accounts, recovered P2,000
12,000 Beg.
accounts, and recognized bad debts
expense of P15,000 Write off 9,000 15,000 Bad debts
2,000 Recovery

20,000 Ending
Requirement: How much is the carrying amount
of accounts receivable at the end of the period.
Acctg

 2. TV Co. had accounts receivable of


Carrying amount
P150,000 and allowance for doubtful
account of P12,000 at the beginning of Accounts Receivable 330,000
the period. During the period, TV Co.
made total sales of P1,000,000 (40% Less: Allowance for
Bad Debts 20,000
were cash sales), collected P410,000
accounts (excluding recoveries), wrote-
off P9,000 accounts, recovered P2,000 Carrying Amount 313,000
accounts, and recognized bad debts
expense of P15,000

Requirement: How much is the carrying amount


of accounts receivable at the end of the period.
Acctg

End of Presentation.
Reference:
Intermediate Accounting 1a, 2019 Edition
by: Zeus Vernon B. Millan

Intermediate Accounting 1, 2020 Edition by:


Conrado T. Valix, et.al

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