St. Paul University Philippines
SCHOOL OF BUSINESS
ACCOUNTANCY AND
HOSPITALITY MANAGEMENT
Tuguegarao City, Cagayan
Intermediate Accounting 1
Second Semester, 2021-2022
1. What is the balance of the allowance for doubtful accounts on December 31, 2020 before
adjustment?
ALLOWANCE-JAN 31
WRITEOFF (200,000+100,000)
TOTAL
RECOVERIES
AFDA-DEC 31 BEFORE ADJUSTMENT
1,000,000
300,000
1,300,000
(50,000)
1,250,000
2. What is the required allowance for doubtful accounts on December 31, 2020?
Aging
Balance
Uncollectible
0-60
61-180
181-360
Over 360
Required
allowance- Dec 31,
2020
6,000,000
2,000,000
1,500,000
500,000-100,000
10%
20%
30%
50%
Uncollectible
Amounts
600,000
400,000
430,000
200,000
1,650,000
3. What amount should be reported as doubtful accounts expense for the current year?
Required allowance-Dec 31
Write-off (200,000+100,000)
TOTAL
Recoveries
AFDA-Jan 1
DAE
1,650,000
300,000
1,950,000
(50,000)
(1,000,000)
900,000
St. Paul University Philippines
SCHOOL OF BUSINESS
ACCOUNTANCY AND
HOSPITALITY MANAGEMENT
Tuguegarao City, Cagayan
Intermediate Accounting 1
Second Semester, 2021-2022
4. What is the year-end adjustment to the allowance for doubtful accounts on December
31,2020?
DAE
Recorded amount (2% x 20,000,000)
DAE
AFDA
900,000
(400,000)
500,000
500,000
5. What is the net realizable value of accounts receivable on December 31, 2020?
A/R- Dec 31,2020
9,900,000
AFDA
(1,650,000)
NET REALIZABLE VALUE
8,250,000