Valix Finacc vol 1 Problem 5-30 to 44

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 5-30 to 44

Problem 5-30  Answer  B                                        

Accounts receivable-January 1                                                                            1,300,000      

Credit sales                                                                                                           5,500,000       

Collections from customers                                                                                (5,000,000)     

Sales return                                                                                                          (   150,000)      

Accounts written off                                                                                            (   100,000)       

Accounts receivable-December 31                                                                      1,550,000        

Allowance for doubtful accounts                                                                       (  250,000)

Allowance for sales return                                                                                   (    50,000)        

Net realizable value                                                                                             1,250,000

 

Problem 5-31  Answer  A   

Trade accounts receivable                                                                                  2,000,000

Allowance for doubtful accounts                                                                      (   100,000)

Claim receivable                                                                                                   300,000

Total trade and other receivables                                                                      2,200,000

Problem 5-32  Answer  C                                       

Accounts receivable (squeeze)                                                                           6,700,000             

 Allowance for doubtful accounts (900,000 – 200,000)                                      (   700,000)               

Net realizable value                                                                                            6,000,000              

Problem 5-33  Answer  B    

Allowance – January 1                                                                                         300,000      

Doubtful accounts expense                                                                                  650,000       

Recovery of accounts written off                                                                          100,000

Total                                                                                                                   1,050,000

Accounts written off                                                                                              450,000

Allowance – December 31                                                                                    600,000

                                                                                                             70

Problem 5-34  Answer  D

Allowance – January 1                                                                                             280,000

Uncollectible accounts expense (squeeze)                                                              100,000

Recovery of accounts written off                                                                               50,000

Total                                                                                                                         430,000

Accounts written off                                                                                                (230,000)

Allowance – December 31 (2,700,000 – 2,500,000)                                                   200,000

Problem 5-35  Answer  A

Allowance – December 2007                                                                                  180,000

Doubtful accounts expense                                                                                      50,000

Total                                                                                                                        230,000

Accounts written off (squeeze)                                                                                 30,000

Allowance – December 2008                                                                                  200,000

Problem 5-36  Answer  B

  0 –60 days (1,200,000 x 1%)                                                                                       12,000

61 – 120 days (900,000 x 2%)                                                                                       18,000

Over 120 days (1,000,000 x 6%)                                                                       60,000

Allowance – December 31, 2008                                                                               90,000

Allowance – December 31, 2007                                                                               60,000

Uncollectible accounts expense (squeeze)                                                               80,000

Recovery                                                                                                                   20,000

Total                                                                                                                        160,000

Accounts written off                                                                                               (  70,000)

Allowance – December 31, 2008                                                                               90,000

Problem 5-37  Answer  D

Allowance for sales discount (5,000,000 x 2% x 50%)                                                 50,000

Problem 5-38  Answer  A                                

                                   

Problem 5-39  Answer  B

Doubtful accounts expense (3% x 3,000,000 + 10,000)                               100,000

         

Problem 5-40  Answer  A

Doubtful accounts expense (2% x 7,000,000)                                             140,000

 

                                                                                                                                                                                    71    

Problem 5-41  Answer  A

Allowance – January 1                                                                                               40,000

Doubtful accounts expense (4% x 5,000,000)                                                200,000

Collection of accounts written off                                                                             10,000

Total                                                                                                                         250,000

Accounts written off                                                                                                   30,000

Allowance – December 31                                                                                       220,000

Problem 5-42  Answer  D

Allowance – January 1                                                                                            250,000    

Doubtful accounts expense (squeeze)                                                                    175,000    

Total                                                                                                                        425,000

Accounts written off                                                                                                205,000    

Allowance – December 31                                                                                      220,000

Problem 5-43  Answer  A                                       

 

Problem 5-44  Answer  A