TUGAS 7

RECEIVABLES

1. Iron Company made the following transactions during the year of 2018.

June 1 Sold Rp60,000,000 of merchandise to Wizard Company, terms 3/10,

n/30

June 6 Received payment in full from Wizard Company for balance due on
existing accounts receivable

June 9 Made visa credit card sales (service charge fee 4%) totaling
Rp5,800,000

June 26 Sold accounts receivables of Rp15,000,000 to Falcom Factor. Falcom

Factor assesses a service charge of 5% of the amount of receivables
sold

July 1 Loaned Rp25,000,000 cash to Marvels Company on a 1 year, 10%

note

July 4 Made Iron Company credit card sales for Rp20,000,000.

July 8 Wrote off as uncollectible Rp8,000,000 of accounts receivable (Iron

Company uses percentage-of-sales method to estimate bad debts)

July 31 Credit sales recorded during the first seven months total of
Rp18,000,000. The bad debt percentage is 2% of credit sales.
(estimation of bad debt using percentage-of-sales)

August 3 One of the accounts receivable written of in July was from S. Rogers,
who pays the amount due of Rp2,400,000 in full.

August 13 Received collections of Rp6,400,000 on Iron Company credit card

sales and added finance charges of 2% to the remaining balances.

On May 30, selected ledger balance of Iron Company were:

Accounts Receivable Rp30,000,000

Notes Receivable Rp20,300,000
Interest Receivable Rp300,000
Instructions:
a. Journalize the transactions for Iron Company.
b. Journalize the interest revenue accrued on December 31, 2018.
c. Post the entries of 2018 to the receivable accounts. (assume beginning balance is June 1).
d. Record the collection of the Marvel Company note at its maturity in 2019.

2. Vengers Company has accounts receivable of Rp35,000,000 on March 31. Credit terms
are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of
Rp770,000 prior to adjustment. The company uses percentage-of-receivables basis for
estimating uncollectible accounts. The company’s estimate of bad debts is shown below.

Age of Accounts Balance, March 31 Estimated Percentage

Uncollectible

1 – 30 days Rp25,000,000 2.0%

31 – 60 days Rp5,400,000 5.0%

61 – 90 days Rp2,500,000 20.0%

Over 90 days Rp1,700,000 50.0%

Rp35,000,000

Instructions:
a. Determine the total estimated uncollectibles.
b. Prepare the adjusting entry at March 31 to bad debt expense.
c. Post the adjusting entry for bad debts on March 31.