Classroom Exercises 1-1 a. How much is the doubtful accounts expense for 2018?

b. How much is the valuation account on January 1, 2018?

Below are the accounts of Contreras Trading for the year-ended c. How much is the net realizable value after adj. entry?
December 2018.
Cash in Banco de Oro 8,000,000
Cash in Metro Pacific Bank 2,000,000 Classroom Exercises 1-3
Accounts Receivables 2,000,000 Rosy Co. had the following information for 2018 relating to its
Petty Cash Fund 50,000 Accounts Receivables:
Change Cash Fund 25,000 Acc. Receivables on Jan. 1 1,300,000
Cash Equivalents 100,000 Credit Sales 5,400,000
Notes Receivables 200,000 Collections from customers,
Raw Materials 600,000 excluding recovery of accounts
Work-in-Progress 400,000 written off 4,750,000
Finished Goods 1,000,000 Accounts written off 125,000
Land Used as Plant Site 1,000,000 Collection on recovered accounts 25,000
Vehicles 2,000,000 Est. Uncollectible receivables
Accumulated depreciation-Vehicles (200,000) per aging at Dec. 31 165,000
Fixtures 1,000,000
Accumulated Depreciation-Fixtures (100,000) What is the balance of Accounts Receivables before the Allowance
Patents 1,000,000 for Doubtful accounts?
Accumulated Amortization-Patents (100,000)
Trademarks 1,000,000
Accumulated Amortization-
Trademarks (100,000)
Land Held for Fair Value
Appreciation 10,000,000
Accounts Payable 2,000,000
Notes Payable 1,000,000
Interest Payable 100,000
Income Tax Payable 900,000
Long-term Debt 5,000,000
Capital 20,875,000

Answer the following questions:

1. How much is the total Cash and Cash Equivalents?
2. How much is total inventories?
3. How much is total property, plant and equipment?
4. How much is total intangible assets?
5. How much is the total current asset of the entity?
6. How much is the total non-current assets?
7. How much is the total current liabilities?
8. How much is the total non-current liabilities?
9. How much is the total assets of the entity?
10. How much is the ratio of the current assets to the
Current liabilities?

Classroom Exercises 1-2

On December 31, 2018, the Allowance for Doubtful Accounts of

Jem Trading has a debit balance of P 7,500 before adjusting
entries. Records show that accounts written off amounted to P
26,800 while recoveries on accounts written off amounted to P
7,100. Aging of outstanding customer accounts conducted by the
company on December 31, 2018 revealed the following:

Classification Amount of A/R Est. Loss %

Not yet due P 420,000 One-half of 1%
1-30 days past due P 140,000 3
31-60 days past due P 75,000 15
61-90 days past due P25,000 50
Over 90 days past due P 15,000 Marked for
write-off