Gráfica 7. Resultados Matriz de Vester Corporación Ocasa
4.2. La ejecución
7. Sales discount
Accounts receivable 8. Cash
Notes receivable
2,450,000
45,000
150,000
2,450,000
45,000
150,000
55
Requirement 2
Notes receivable 250 , 000
Requirement 3 Accounts receivable
Less: Allowance for doubtful accounts Net realizable value
670,000 70 , 000 600 , 000 Problem 5-7
FOB destination and freight collect 1. Accounts receivable
Freight out Sales
Allowance for freight charge 2. Cash
Sales discount
Allowance for freight charge Accounts receivable
500,000 10,000
475,000 15,000 10,000
500,000 10,000
500,000
FOB destination and freight prepaid 1. Accounts receivable
Freight out Sales Cash 2. Cash
Sales discount
Accounts receivable
500,000 10,000
485,000 15,000
500,000 10,000
500,000
FOB shipping point and freight collect 1. Accounts receivable
Sales
500,000
500,000
2. Cash
Sales discount
Accounts receivable
485,000 15,000
500,000 FOB shipping point and freight prepaid
1. Accounts receivable Sales
Cash
510,000
500,000 10,000
56
2. Cash
Sales discount
Accounts receivable
495,000 15,000
510,000 Problem 5-8
1. Accounts receivable Sales
2. Cash
Sales discount
Accounts receivable 3. Cash
Accounts receivable 4. Sales return
Accounts receivable 5. Sales return
Allowance for sales return
4,000,000
1,470,000 30,000
1,000,000
100,000
40,000
4,000,000
1,500,000
1,000,000
100,000
40,000
Problem 5-9
Gross method Net method
July 1 Accounts receivable Sales
49,000
2 Accounts receivable Sales
196,000
50,000
200,000
50,000
200,000
July 1 Accounts receivable Sales
2 Accounts receivable Sales
49,000
196,000
12 Cash 196,000 12 Cash 196,000
Sales discount 4,000 Accounts receivable 196,000
Accounts receivable 200,000
30 Cash 50,000 30 Cash 50,000 Accounts receivable 50,000
49,000 1,000
Accounts receivable Sales discount forfeited
Problem 5-10
a. Credit sales (75% x 5,000,000) Doubtful accounts (2% x 3,750,000) Doubtful accounts
Allowance for doubtful accounts
3,750,000 75,000 75,000
75,000
b. Doubtful accounts (1% x 5,000,000) 50,000
Allowance for doubtful accounts 50,000
57
c. Required allowance 80,000
Less: Credit balance of allowance 20 , 000
Doubtful accounts expense , 00060
Doubtful accounts 60,000
Allowance for doubtful accounts 60,000
d. Required allowance (10% x 500,000) 50,000
Less: Credit balance of allowance 20 , 000
Doubtful accounts expense , 00030
Doubtful accounts 30,000
Allowance for doubtful accounts 30,000
Problem 5-11
a. Required allowance (5% x 600,000) 30,000
Add: Debit balance in allowance account 10 , 000
Doubtful accounts expense 40 , 000
Doubtful accounts 40,000
Allowance for doubtful accounts 40,000
b. Required allowance 50,000
Add: Debit balance in allowance account 10 , 000
Doubtful accounts expense 60 , 000
Doubtful accounts 60,000
Allowance for doubtful accounts 60,000
c. Doubtful accounts (2% x 1,900,000) 38,000
Allowance for doubtful accounts 38,000
Problem 5-12
a. Doubtful accounts (3% x 8,000,000) Allowance for doubtful accounts b. Doubtful accounts
Allowance for doubtful accounts Allowance – January 1
Doubtful accounts (squeeze) Recovery
Total
Accounts written off
Allowance – December 31 (8% x 2,000,000) c. Doubtful accounts
Allowance for doubtful accounts
240,000
170,000
210,000
240,000
170,000 100,000 170,000 20 ,0 00 290,000 130 , 000 160 , 000
210,000
58
Allowance – January 1 Doubtful accounts (squeeze) Recovery
Total
Accounts written off Allowance – December 31
100,000 210,000 20 , 000 330,000 130 , 000 200 , 000 Problem 5-13
Requirement a
1. Accounts receivable Sales
2. Cash
Sales discount
Accounts receivable(2,450,000/98%) 3. Cash
Accounts receivable
4. Allowance for doubtful accounts Accounts receivable
5. Accounts receivable
Allowance for doubtful accounts Cash
Accounts receivable 6. Sales return
7,000,000
2,450,000 50,000
3,900,000
30,000
10,000
10,000
70,000
7,000,000
2,500,000
3,900,000
30,000
10,000
10,000
Accounts receivable 70,000 Requirement b
Doubtful accounts 40,000
Allowance for doubtful accounts 40,000
Rate = 40,000/1,000,000 = 4 %
Allowance for doubtful accounts – December 31 (4% x 1,500,000) 60,000
Less: Allowance before adjustment 20 , 000
Doubtful accounts expense 40 , 000
Requirement c
Accounts receivable – December 31 Allowance for doubtful accounts Net realizable value
1,500,000
( 6 0 , 000 ) 1
, 440 , 000
59
Problem 5-14 Requirement a 1. Cash
Accounts receivable Sales (800,000/10%) 2. Cash
Sales discount (5% x 720,000)
Accounts receivable(10% x 7,200,000) 3. Cash
Accounts receivable 4. Sales discount
Allowance for sales discount 5. Sales return
Accounts receivable
6. Allowance for doubtful accounts Accounts receivable
Accounts receivable
Allowance for doubtful accounts Cash
Accounts receivable
800,000 7,200,000
684,000 36,000
5,940,000
10,000
80,000
60,000
10,000
10,000
8,000,000
720,000
5,940,000
10,000
80,000
60,000
10,000
10,000
7. Doubtful accounts 70,000
Allowance for doubtful accounts 70,000
Required allowance – December 31 (5% x 2,400,000) Less: Allowance before adjustment
Doubtful accounts
120,000 50 , 000 70 , 000
Rate = 100,000/2,000,000 = 5 %
Requirement b Accounts receivable
Less: Allowance for doubtful accounts Allowance for sales discount Net realizable value
120,000 10 , 000
2,400,000 130 , 000 2
, 270 , 000
60
Problem 5-15 Requirement a
1. Accounts receivable
Sales (3,070,000 – 470,000) 2. Cash (2,455,000 – 1,455,000)
Accounts receivable 3. Cash
Sales discount
2,600,000
1,000,000
1,455,000 45,000
2,600,000
1,000,000
Accounts receivable (1,455,000/97%) 4. Allowance for doubtful accounts
Accounts receivable 5. Cash
Sales
6. Sales return and allowances Accounts receivable 7. Sales return and allowances
Cash
8. Accounts receivable
Allowance for doubtful accounts
1,500,000 20,000
20,000 470,000
470,000 55,000
55,000 10,000
10,000 5,000
5,000
Cash 5,000
Accounts receivable 5,000
7. Doubtful accounts 50,000
Allowance for doubtful accounts 50,000
Credit sales
Less: Sales discount
2,600,000 45,000
Sales return and allowances Net credit sales
Less: Allowance for doubtful accounts Net realizable value
1. Accounts receivable – Jan. 1 Sales
2% x 4,500,000 90,000 Sales return ( 30 , 00 0 ) 1% x 2,500,000 25 , 000 Over 90 days past due
Amount
Doubtful accounts expense (squeeze) Total
Less: Writeoff (235,000 + 30,000) Required allowance – December 31
170,000
3. Accounts receivable
Less: Allowance for doubtful accounts Net realizable value
Doubtful accounts (squeeze) Total
Less: Writeoff (100,000 + 40,000) Allowance – December 31
90,000
3. Doubtful accounts 20,000
Allowance for doubtful accounts 20,000
Correct amount
Recorded (2% x 9,000,000) Understatement
4. Accounts receivable – December 31 Less: Allowance for doubtful accounts Net realizable value 2. Credit sales for 2008
2 %
3,000,000 Multiply by bad debt percentage
Provision for doubtful accounts
3. Accounts receivable – January 1, 2008 Add: Credit sales for 2008
2 %
Less: Collections in 2008 Writeoff
Accounts receivable – December 31, 2008 4. Allowance for doubtful accounts – January 1
Add: Doubtful accounts for 2008 Recoveries
Total 85,000
Less: Writeoff 40 , 0 0 0
Allowance for doubtful accounts – December 31 45 , 000 Problem 5-20
1. Accounts receivable – December 31, 2007 Add: Sales for 2008
Recovery of accounts written off Total
Less: Collection from customers Accounts written off
Accounts settled by issuance of note Accounts receivable – December 31, 2008
5,000,000 10 , 0 00 4,360,000 50,000 200 , 000
600,000 5
, 010 , 000 5,610,000
4
, 610 , 000 1
, 000 , 000
2. Allowance for doubtful accounts – December 31, 2007 Add: Recovery of accounts written off
Total
Less: Accounts written off
Allowance before adjustment – December 31, 2008 (debit balance)
30,000 10 , 000 40,000 50 , 0 0 0 ( 10 , 000 )
63
3. Required allowance – December 31, 2008 On current accounts (700,000 x 5%) On past due accounts (300,000 x 20%) Total
4. Required allowance – December 31, 2008 Add: Debit balance before adjustment Increase in allowance
5. Doubtful accounts
Allowance for doubtful accounts
35,000 60 , 000 95 , 000 95,000 10 , 000 105 , 000 105,000
105,000
Problem 5-21
170,000 – 10,000
Rate in 2007 = --- = . 0 1 6 10,000,000
1. Retained earnings (.016 x 1,250,000) Allowance for doubtful accounts 2. Allowance – January 1
Recoveries – 2008
Doubtful accounts – 2008 (squeeze) Total
Less: Writeoff – 2008
258,000 – 20,000 Rate in 2008 = --- = .
0
1 7 14,000,000 20,000
20,000
20,000 10,000 92 , 000 122,000 88 , 000
Allowance – December 31 (.017 x 2,000,000) 3. Accounts receivable
Less: Allowance for doubtful accounts Net realizable value
1. Allowance – January 1, 2008
Doubtful accounts recorded (2% x 20,000,000) Recovery
Total
Less: Writeoff (300,000 + 100,000) Allowance balance before adjustment 2. 5,000,000 x 5%
2,000,000 x 10%
1,000,000 x 25%
500,000 – 100,000 x 75%
Required allowance – December 31, 2008
3. Doubtful accounts 450,000
500,000
Allowance for doubtful accounts (1,000,000 – 550,000) 450,000
64
Problem 5-23
1. Allowance – 1/1/2008 (1% x 2,800,000) 2. Allowance – 1/1/2008
Doubtful accounts recorded in 2008 (1% x 3,000,000) Recovery
Required allowance – 12/31/2008
4. Doubtful accounts 1,000
Allowance for doubtful accounts (39,000 – 38,000)
28
Jan. 1 Loan receivable Cash
4,000,000
4,000,000
Cash
Unearned interest income Unearned interest income
Cash
342,100
150,000
342,100
150,000
Dec. 31 Cash
Interest income
400,000
400,000
Unearned interest income 56,948
Interest income 56,948
(10%) (12%)
Date 01/01/2008 12/31/2008 12/31/2009 12/31/2010
Interest received 400,000 400,000 400,000
Interest income 456,948 463,782 471,370*
Amortization 56,948 63,782 71,370
Carrying value 3,807,900 3,864,848 3,928,630 4,000,000
*12% x 3,928,630 equals 471,435, or a difference of P65 due to rounding.
2009
Dec. 31 Cash
Interest income
400,000
400,000
65
2009
Dec. 31 Unearned interest income 63,782
Interest income 63,782
2010
Dec. 31 Cash
Interest income
400,000
400,000 Unearned interest income
Interest income Cash
Loan receivable
71,370
4,000,000
71,370
4,000,000
Problem 5-25 2008
Jan. 1 Loan receivable Cash
3,000,000
3,000,000
Direct origination cost Cash
Cash
260,300
260,300 100,000
Direct origination cost 100,000
Dec. 31 Cash
Interest income
240,000
240,000
Interest income 50,382
Direct origination cost 50,382
(8%) (6%)
Date 01/01/2008 12/31/2008 12/31/2009 12/31/2010
Interest received 240,000 240,000 240,000
Interest income 189,618 186,595 183,487
Amortization 50,382 53,405 56,513
Carrying value 3,160,300 3,109,918 3,056,513 3,000,000 2009
Dec. 31 Cash
Interest income
240,000
240,000
Interest income 53,405
Direct origination cost 53,405 2010
Dec. 31 Cash
Interest income
240,000
240,000
66
2010
Dec. 31 Interest income 56,513
Direct origination cost 56,513
Cash
Loan receivable
3,000,000
3,000,000 Problem 5-26
Requirement 1
December 31, 2009 (1,000,000 x .93) December 31, 2010 (2,000,000 x .86) December 31, 2011 (3,000,000 x .79) Total present value of loan
900,000 1,720,000 2
, 370 , 000 5
, 020 , 000 Requirement 2
Loan receivable – 12/31/2008 Accrued interest (6,000,000 x 8%) Total carrying value
Present value of loan
6,000,000 480 , 000 6,480,000 5
, 020 , 000
Impairment loss 1 , 460 , 000 Requirement 3
2008 Impairment loss
Accrued interest receivable Allowance for loan impairment 2009 Cash
Loan receivable
1,460,000
1,000,000
480,000 980,000
1,000,000
Allowance for loan impairment Interest income (8% x 5,020,000)
401,600
401,600 2010 Cash
Loan receivable
2,000,000
2,000,000 Allowance for loan impairment
Interest income
353,728
353,728 Loan receivable – 12/31/2009
Allowance for loan impairment (980,000 – 401,600) Carrying value – 12/31/2009
Interest income for 2010 (8% x 4,421,600)
5,000,000
( 5 7 8 , 400 ) 4
, 421 , 600 353 , 728
67
2011 Cash
Loan receivable
3,000,000
3,000,000 Allowance for loan impairment
Interest income 224,672
224,672 Loan receivable – 12/31/2010
Allowance for loan impairment (578,400 – 353,672) Carrying value – 12/31/2010
Interest income for 2011 (8% x 2,775,328) Allowance per book
Difference due to rounding
3,000,000
( 2 2 4 , 672 ) 2
, 775 , 328 222,026 224 , 672
2 , 646 Problem 5-27
Requirement 1
December 31, 2009 ( 500,000 x .89) 445,000
December 31, 2010 (1,000,000 x .80) December 31, 2011 (2,000,000 x .71)
800,000 1,420,000
December 31, 2012 (4,000,000 x .64) Total present value of loan
2
Accrued interest receivable (12% x 7,500,000) Total carrying value
Present value of loan Impairment loss
Accrued interest receivable Allowance for loan impairment 2009 Cash
Allowance for loan impairment
Interest income (12& x 5,225,000) 627,000 627,000 2010 Cash
Loan receivable
1,000,000
1,000,000 Allowance for loan impairment
Interest income 642,240
642,240
68
Loan receivable – 12/31/2009
Allowance for loan impairment (2,275,000 – 627,000) Carrying value – 12/31/2009
Interest income for 2010 (12% x 5,352,000)
7,000,000
December 31, 2011 ( December 31, 2012 ( December 31, 2013 (
360,000 x .772)
Face value of loan Present value of loan Impairment loss
4,000,000 3
, 365 , 360 634 , 640 December 31, 2014 (4,360,000 x .596)
Total present value of loan 2 , 598 , 560
Allowance for loan impairment 634,640 2009 Allowance for loan impairment
Interest income (9% x 3,365,360) 2010 Allowance for loan impairment
Interest income (634,640 – 302,882) 2011 Cash
Interest income 2012 Cash
Interest income 2013 Cash
Interest income 2014 Cash
Interest income Loan receivable
302,882
331,758
360,000
360,000
360,000
4,360,000
302,882
331,758
360,000
360,000
360,000
360,000 4,000,000
Problem 5-29
12/31/2008 Impairment loss
Allowance for loan impairment
338,500
338,500 The remaining term of the loan is 4 years. Accordingly, the present value factor for 4 periods is used.
69
Present value of principal (500,000 x .735)
Present value of interest (80,000 x 5 = 400,000 x .735) Total present value of loan
Loan receivable Present value of loan Loan impairment loss
367,500 294
, 000 661 , 500 1,000,000 6 61 , 500 338 , 500 12/31/2009 Allowance for loan impairment 52,920
Interest income (8% x 661,500) 52,920
Problem 5-30 Answer B