Reference no: EM133096024

Questions -

Q1. Before year-end adjusting entries, CPA Company's account balances at December 31, 2021, for accounts receivable and the related allowance for uncollectible accounts were P500,000 and P45,000, respectively. An aging of accounts receivable indicated that P62,500 of the December 31 receivables are expected to be uncollectible. How much is the net realizable value of accounts receivable after adjustment?

Q2. CPA Co. assigned P500,000 of accounts receivable to IntAcc1 Finance Co. as security for a loan of P420,000. IntAcc1 charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During the first month, CPA collected P110,000 on assigned accounts after deducting P380 of discounts. CPA accepted returns worth P1,350 and wrote off assigned accounts totaling P3,700. The amount of cash CPA received from IntAcc1 at the time of the transfer was?

Q3. Based on aging of the receivables at December 31, 2021, CPA Co. has determined that its collectible trade receivables were P6,500,000. Following information pertains to CPA's trade receivable in 2021: trade receivables December 31, P7,000,000; allowance for uncollectible accounts, January 1, P600,000; uncollectible accounts written off P360,000 and uncollectible accounts recovered, P40,000. What would be CPA's provision for bad debts for 2021?