Problem 4-5

1 Accounts receivable 4,500,000

Sales 4,500,000
To record the on account sale

2 Cash 4,410,000
Cash discount 90,000
Accounts receivable 4,500,000

3 Cash 4,500,000
Accounts receivable 4,500,000
To record the collection beyond the discount period

Problem 4-6
1 Accounts receivables 2,450,000
Sales 2,450,000
To record the on account sale

2 Cash 2,450,000
Accounts receivables 2,450,000
To record the collection within the discount period

3 Cash 2,500,000
Accounts receivables 2,450,000
Cash forfeited 50,000
To record the collection beyond the discount period

Problem 4-7
Accouns receivables 4,000,000
Sales 4,000,000
To record sales

Sales return 300,000

Accounts receivables 300,000
To record sales return

Sales return 100,000

Allowance for sales return 100,000
To record sales return

Computation of year end adjusted sales return

Estimated sales return 400,000
less: actural sales return (300,000)
Balance 100,000
Problem 4-8
Answer: A
Trade accounts receivables 2,000,000
Allowance for doubtful account(100,000)
Claims against shipper 300,000
Total currentand trade receivable
2,200,000

Problem 4-9
Answer: B
A/R- jan. 1,300,000
Creadit sales 5,500,000
Sales return (150,000)
Written off (100,000)
Collection (5,000,000)
A/R- dec. 1,550,000
Allowance for sales return (50,000)
Allowance for doubtful account
(250,000)
Net realizable value 1,250,000

Problem 4-10
Answer: A
A/R- Jan 1,300,000
Credit sales 5,400,000
Collection from customer (4,750,000)
Written- off (125,000)
A/R- Dec. 1,825,000

Problem 4-11
Answer: A
Trade accounts receivable 3,500,000
Trade installment receivable 800,000
Trade accounts receivable from150,000
officer
Trade accounts on which postdated
200,000
check are held
Balance of trade A/R 4,650,000

Problem 4-12
1 Answer: B
Accounts Receivables- Jan 560,000
Charge sales 5,250,000
Writeen off but recovered 10,000
Less: Coolection (5,150,000)
Written off (35,000)
 Merchandise return (25,000)
Allowance to customers (15,000)
Accounts Receivables- Dec 595,000

2 Answer: C
Accounts receivables- Dec 595,000
Claim against common carrier 400,000
Advance to supplier 300,000
Less: Collection on carrier claim(50,000)
Total trade and other receivable
1,245,000

3 Answer: C
Shareholders subscription 1,000,000
Deposit on long term contract 500,000
Less: Collection on subscribtion
(200,000)
Total long term other receivable
1,300,000