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    Applied Auditing - Receivables

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    Glen Mervin Esguerra
    Accounts receivable was $515,475, allowance for doubtful accounts was $41,757, notes receivable was $194,400, and notes receivable discounted was $135,000 based on the following financial information provided for UPAT Company for the year ending December 31, 2016: sales on credit of $2,623,800, various collections and transactions related to accounts and notes receivable, and an estimated bad debt percentage of 1.5% on credit sales.

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    Applied Auditing - Receivables

    Uploaded by

    Glen Mervin Esguerra
    285 views2 pages
    Accounts receivable was $515,475, allowance for doubtful accounts was $41,757, notes receivable was $194,400, and notes receivable discounted was $135,000 based on the following financial information provided for UPAT Company for the year ending December 31, 2016: sales on credit of $2,623,800, various collections and transactions related to accounts and notes receivable, and an estimated bad debt percentage of 1.5% on credit sales.

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    Accounts receivable was $515,475, allowance for doubtful accounts was $41,757, notes receivable was $194,400, and notes receivable discounted was $135,000 based on the following financial information provided for UPAT Company for the year ending December 31, 2016: sales on credit of $2,623,800, various collections and transactions related to accounts and notes receivable, and an estimated bad debt percentage of 1.5% on credit sales.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    285 views2 pages

    Applied Auditing - Receivables

    Uploaded by

    Glen Mervin Esguerra
    Accounts receivable was $515,475, allowance for doubtful accounts was $41,757, notes receivable was $194,400, and notes receivable discounted was $135,000 based on the following financial information provided for UPAT Company for the year ending December 31, 2016: sales on credit of $2,623,800, various collections and transactions related to accounts and notes receivable, and an estimated bad debt percentage of 1.5% on credit sales.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    PROBLEM #1

    The December 31, 2015, statement of financial position of the UPAT Company included the following
    information:
    Accounts Receivable 672,000
    Less: Allowance for bad debts (42,300) P 629,700
    Notes Receivable* 65,400
    Total Receivables P 695,100
    * the Company is contingently liable for discontinued notes receivable of P 114,000.
    During the year ending December 31, 2016, the following transactions occurred:
    1. Sales on credit P 2,623,800
    2. Collections of accounts receivable 2,523,000
    3. Accounts receivable written off 41,400
    4. Notes receivable collected 87,000
    5. Customer notes received in payment of accounts receivable 216,000
    6. Notes receivable discounted that were defaulted, included interest of P60 and P15 6075
    fee. This amount is expected to be collected during 2017.
    7. Notes receivable discounted that were paid at maturity 108,000
    8. Proceeds from customer notes discounted with recourse (principal P 135,000, 135,225
    accrued interest, P 600)
    9. Collections on accounts receivable previously written off 1,500
    10. Sales returns and allowances (on credit sales) 6,000
    11. Bad debts were estimated to be 1.5% on credit sales
    Based on the preceding information, determine the balances of the following accounts at December 31,
    2016.
    1. Accounts receivable
    2. Allowance for doubtful accounts
    3. Notes receivable
    4. Notes receivable discounted
    SUGGESTED ANSWERS
    PROBLEM #1
    1. 515,475
    2. 41,757
    3. 194,400
    4. 135,000

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