The following selected transactions occurred during the year ended December 31, 2026 of RANOA COMPANY: Gross sales (cash and credit) P900,736.80 Collections from credit customers, net of 2% cash discount 294,000.00 Cash sales 180,000.00 Uncollectible accounts written off 19,200.00 Credit memos issued to credit customers for sales ret./allow. 10,080.00 Cash refunds given to cash customers for sales ret./allow. 15,168.00 Recoveries on accounts receivable written-off in prior years (not included in cash received stated above) 6,505.20 At year-end, the company provides for estimated bad debts losses by crediting the Allowance for Bad Debts account for 2% of its net credit sales for the year. The allowance for bad debts at the beginning of the year is P19,327.20. 9. How much is the RANOA COMPANY’s gross sales? 10. RANOA credit sales at December 31, 2026 is: 11. How much is the RANOA COMPANY’s net credit sales? 12. The Bad Debts Expense of RANOA COMPANY at December 31, 2026 is: 13. The Accounts Receivable of RANOA COMPANY at December31, 2026 is: 14. The Allowance for Bad Debts of RANOA COMPANY at December 31, 2026 is:
The following selected transactions occurred during the year ended December 31, 2026 of RANOA COMPANY: Gross sales (cash and credit) P900,736.80 Collections from credit customers, net of 2% cash discount 294,000.00 Cash sales 180,000.00 Uncollectible accounts written off 19,200.00 Credit memos issued to credit customers for sales ret./allow. 10,080.00 Cash refunds given to cash customers for sales ret./allow. 15,168.00 Recoveries on accounts receivable written-off in prior years (not included in cash received stated above) 6,505.20 At year-end, the company provides for estimated bad debts losses by crediting the Allowance for Bad Debts account for 2% of its net credit sales for the year. The allowance for bad debts at the beginning of the year is P19,327.20. 9. How much is the RANOA COMPANY’s gross sales? 10. RANOA credit sales at December 31, 2026 is: 11. How much is the RANOA COMPANY’s net credit sales? 12. The Bad Debts Expense of RANOA COMPANY at December 31, 2026 is: 13. The Accounts Receivable of RANOA COMPANY at December31, 2026 is: 14. The Allowance for Bad Debts of RANOA COMPANY at December 31, 2026 is:
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 10P
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
The following selected transactions occurred during the year ended December 31,
2026 of RANOA COMPANY:
Gross sales (cash and credit) P900,736.80
Collections from credit customers, net of 2% cash discount 294,000.00
Cash sales 180,000.00
Uncollectible accounts written off 19,200.00
Credit memos issued to credit customers for sales ret./allow. 10,080.00
Cash refunds given to cash customers for sales ret./allow. 15,168.00
Recoveries on accounts receivable written-off in prior years
(not included in cash received stated above) 6,505.20
At year-end, the company provides for estimated bad debts losses by crediting the
Allowance for Bad Debts account for 2% of its net credit sales for the year. The
allowance for bad debts at the beginning of the year is P19,327.20.
9. How much is the RANOA COMPANY’s gross sales?
10. RANOA credit sales at December 31, 2026 is:
11. How much is the RANOA COMPANY’s net credit sales?
12. The Bad Debts Expense of RANOA COMPANY at December 31, 2026 is:
13. The Accounts Receivable of RANOA COMPANY at December31, 2026 is:
14. The Allowance for Bad Debts of RANOA COMPANY at December 31, 2026 is:
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