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Solution To AR Assignment

The document contains detailed financial information including proceeds, gains, losses, and various receivables and loans. It outlines transactions related to maturity values, discounts, interest income, and accounts receivable over multiple years. Additionally, it summarizes credit sales, recoveries, and the allowance for doubtful accounts, providing a comprehensive overview of financial activities and balances.

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4 views10 pages

Solution To AR Assignment

The document contains detailed financial information including proceeds, gains, losses, and various receivables and loans. It outlines transactions related to maturity values, discounts, interest income, and accounts receivable over multiple years. Additionally, it summarizes credit sales, recoveries, and the allowance for doubtful accounts, providing a comprehensive overview of financial activities and balances.

Uploaded by

backupedpd05
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1) Loss 0 Proceeds 2,500,000.

00
Book Value 2,350,000.00
Gain 150,000.00

2) Maturity Value 270,000.00


Less Discount 13,500.00
Proceeds 256,500.00

3) Maturity Value 3,090.00


Discount 30.90
Proceeds 3,059.10

4) Maturity Value 424,000.00


Discount 14,698.67
Selling Price (proceeds from discounting) 409,301.33
Book Value 400,000.00
Gain on Sale 9,301.33

5) Interest Income 14,698.67

6) January 22, 2016

7) Maturity Value 106,000.00


Discount 3,975.00
Proceeds 102,025.00
Book Value
Face Value 100,000.00
Interest Income 3,000.00 103,000.00
Interest Expense (975.00)

8) Maturity Value 66,300.00


Discount 644.58 Apr 13.00 13.00
Proceeds 65,655.42 May 31.00 31.00
Book Value Jun 30.00 11.00
Face Value 65,000.00 Jul 26.00
Interest Income 794.44 65,794.44 100.00
Loss on Notes Receivable Discounted (139.03) 90.00 55.00
10.00 Age
July 26, 2016
Maturity Value 66,300.00
Protest Fee 1,250.00
Interest Income (67,550 X 8% X 10/360) 150.11
Total Cash Received 67,700.11

9) Receivable from Factor 72,000.00


Returns 14,700.00
Cash Received 57,300.00
10) Loans 400,000.00 300,000.00
Less payment (292,400.00) 3,600.00 SD
Loan Balance 107,600.00 296,400.00
4,000.00 Interest
292,400.00 Collections charged to loan
Equity on Assigned Accounts 100,000.00
Returns (5,000.00)
Discount (3,600.00)
Interest (4,000.00)
Balance 87,400.00

Receivable Balance 195,000.00


Loans 107,600.00
Equity on Assigned Accounts 87,400.00

11) Credit Card Sale 10,000.00


Other Trade Accounts - Unassigned 50,000.00
Trade Accounts - Assigned 10,000.00
Notes Receivable Dishonored 5,000.00
Installment due w/in 16 months 200,000.00
Total Trade Receivable 275,000.00

12) Acceptance 6 months 5,000.00


Acceptance 8 months 6,000.00
Total Trade Notes 11,000.00

13) Total Trade Receivable 275,000.00


Total Trade Notes 11,000.00
Overpayment 20,000.00
Insurance claim 2,000.00
Advances to sales manager 4,000.00
Interest due on 5-year note 6,000.00
Accrued Interest on Note 100.00
Claim for tax refund 3,000.00
Advances to stockholders 100,000.00
Dividends Receivable 10,000.00
Accrued Rent Receivables 6,000.00
Claims against common carrier 4,900.00
Trade and Other Receivables 442,000.00

14) 5-Year Note 300,000.00


Note Receivable Customer 30,000.00
Advances to stockholders 150,000.00
Advances to affiliates 125,000.00
Special Deposit 30,000.00
Total Non-current receivables 635,000.00
15) Total 1,250,000.00
Unearned Interest (20,000.00)
Uncollectible Accounts (4,000.00)
Overpayment by customer 5,000.00
Prepaid Insurance (4,000.00)
Trade Accounts (11) (275,000.00)
Trade Notes (12) (11,000.00)
Subscription receivables (150,000.00)
Total Non-trade Receivables 791,000.00

Accounts
16) Year Credit Sales Written Off Recoveries Net
2019 2,100,000.00 20,000.00 15,000.00 5,000.00
2020 1,850,000.00 40,000.00 20,000.00 20,000.00
2021 2,050,000.00 130,000.00 5,000.00 125,000.00
2022 2,000,000.00 22,000.00 20,000.00 2,000.00
8,000,000.00 152,000.00

Net Accounts Written off 152,000.00


Divide by credit sales 8,000,000.00
Percentage 1.90%

17) Doubtful Account Expense 38,000.00

18) Beginning 400,000.00


Written Off (113,000.00)
Recoveries 40,000.00
Provision 38,000.00
Ending 365,000.00
35.00
Disc. Period
s charged to loan
Sales 6,750,000.00
Cash Sales 550,000.00
Credit Sales 6,200,000.00 Proceeds from Financing
Accounts Receivable Jan 1 2,500,000.00
Total Receivables 8,700,000.00
Sales Return (33,000.00)
Accounts written off (35,000.00)
Accounts recovered 20,000.00
Total AR before collection and AR financing 8,652,000.00
Collected Accounts from Cash Received from collections
Customer w/ 2% discount 2,142,857.14 2,100,000.00
Customer w/ 1% discount 353,535.35 350,000.00
Customer w/o discount 1,050,000.00 1,050,000.00
Accounts recovered 20,000.00 3,566,392.50 20,000.00
Accounts Receivable balance before AR Financing 5,085,607.50 3,520,000.00
Less Accounts Receivable:
Factored 1,000,000.00
Assigned 750,000.00 1,750,000.00 250,000.00
Accounts Receivable Balance December 31, 2023 3,335,607.50 3,770,000.00
Accounts Receivable Assigned 496,938.78
Total Accounts Receivables 3,832,546.28

Allowance for Doubtful Accounts Jan 1, 2023


Accounts Written Off
Accounts recoveries
Allowance for doubtful accounts before provision and adjustments
Required Allowance for DA December 31, 2023
Doubtful Account Expense 2023

Sales
Sales Discount
Sales Return
Net Sales

Current Non-Current
Interest Note
9% Note from Bradd 500,000.00 500,000.00
Interest 60,000.00
8% Note from John Mateo 400,000.00
Interest 8,000.00
Non-Interest bearing note from Belly 84,120.98
Interest
16% Note from Carrie 276,000.00 1,124,000.00
Interest 112,000.00
Total 180,000.00 776,000.00 2,108,120.98

First Loan Second Loan


Date of Loan 1-Apr-20 30-Jun-20
Terms 5 years semi-annual payment of P250,000
Interest Rate 12% 14%
Effective Rate 13% 12%
Cash Received in 2023 - 355,000.00
Face Value 2,000,000.00 1,500,000.00
DOC 29,655.00 90,222.97
DOF (100,000.00) (45,111.49)
Net Proceeds 1,929,655.00 1,545,111.49

Carrying Value of Loan, April 1, 2023


Face Value 2,000,000.00
Unearned Interest (33,362.05)
Interest receivable 240,000.00
Total 2,206,637.95
Present Value of FCF
Interest Principal Total PVIF @ 13%
160,000.00 160,000.00 0.88496 141,592.92
160,000.00 500,000.00 660,000.00 0.78315 516,876.81
120,000.00 500,000.00 620,000.00 0.69305 429,691.10
80,000.00 500,000.00 580,000.00 0.61332 355,724.86
40,000.00 500,000.00 540,000.00 0.54276 293,090.37
Total Present Value 1,736,976.06
Loan Impairment Loss 469,661.89
Proceeds from Financing
Factoring
1,000,000.00 AR Factored
(50,000.00) 5% Assessment Fee
(18,493.15) 15% Interest
(5,000.00) 2% discount on 25% AR Factored
926,506.85 Net Proceeds
d from collections
Assignment
500,000.00 Loan
(25,000.00) 5% Finance fee
475,000.00 Net Proceeds

926,506.85
475,000.00
1,401,506.85

50,000.00
(35,000.00)
20,000.00
35,000.00
76,650.93
41,650.93

6,750,000.00
(54,453.72)
(55,000.00)
6,640,546.28

Interest Income Gain or Loss Cash Received

500,000.00
105,000.00 135,000.00

32,000.00 32,000.00
37,614.37
8,506.62
500,000.00
112,000.00
257,506.62 537,614.37 667,000.00

Principal Interest @ 14% Total Payment


1,500,000.00 PVIF @ 12%
yment of P250,000 1,250,000.00 250,000.00 105,000.00 355,000.00 0.943396
1,000,000.00 250,000.00 87,500.00 337,500.00 0.889996
750,000.00 250,000.00 70,000.00 320,000.00 0.839619
500,000.00 250,000.00 52,500.00 302,500.00 0.792094
250,000.00 250,000.00 35,000.00 285,000.00 0.747258
- 250,000.00 17,500.00 267,500.00 0.704961

65,806.89 49,355.17 1,786,331.23


334,905.66
300,373.80
268,678.17
239,608.33
212,968.58
188,576.94
1,545,111.49

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