PROBLEM #1

The December 31, 2015, statement of financial position of the UPAT Company included the following
information:
Accounts Receivable 672,000
Less: Allowance for bad debts (42,300) P 629,700
Notes Receivable* 65,400
Total Receivables P 695,100
* the Company is contingently liable for discontinued notes receivable of P 114,000.
During the year ending December 31, 2016, the following transactions occurred:
1. Sales on credit P 2,623,800
2. Collections of accounts receivable 2,523,000
3. Accounts receivable written off 41,400
4. Notes receivable collected 87,000
5. Customer notes received in payment of accounts receivable 216,000
6. Notes receivable discounted that were defaulted, included interest of P60 and P15 6075
fee. This amount is expected to be collected during 2017.
7. Notes receivable discounted that were paid at maturity 108,000
8. Proceeds from customer notes discounted with recourse (principal P 135,000, 135,225
accrued interest, P 600)
9. Collections on accounts receivable previously written off 1,500
10. Sales returns and allowances (on credit sales) 6,000
11. Bad debts were estimated to be 1.5% on credit sales
Based on the preceding information, determine the balances of the following accounts at December 31,
2016.
1. Accounts receivable
2. Allowance for doubtful accounts
3. Notes receivable
4. Notes receivable discounted
 SUGGESTED ANSWERS
PROBLEM #1
1. 515,475
2. 41,757
3. 194,400
4. 135,000