ExercisesExercise 1When examining the accounts of Tripoli Company, you ascertain thatbalances relating to both receivables and payables are included in a singlecontrolling account (called receivables), which has a P23,050 debit balance.An analysis of the details of this account revealed the following:ItemscustomersAccounts receivableAccounts receivable - officers(current collection expected)Debit balances-creditorsExpense advances to salespersonsShare capital subscriptions receivableAccounts payable for merchandiseUnpaid salariesCredit balance in customer accountsCash received in advance from customers for goodsnot yet shippedExpected bad debts, cumulativeDebitP40,0002,5004501,0004,600CreditP 19,2503,3002,000450500Required:1. Give the journal entry to eliminate the above account and to set up theappropriate accounts to replace it.2.How should the items be reported on Tripoli Company's statement offinancial position?

Journal entry to eliminate the receivables controlling account and set up appropriate accounts:…

Required: 1. Give the journal entry to eliminate the above account and to set up the appropriate accounts to replace it. 2. How should the items be reported on Tripoli Company's statement of financial position?

Required: 1. Give the journal entry to eliminate the above account and to set up the appropriate accounts to replace it. 2. How should the items be reported on Tripoli Company's statement of financial position?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing: Items Debit Credit Accounts Receivable - customers P 40,000 Accounts receivable - officers (Current collection expected) 2,500 Debit balances - creditors 450 Expense advances to salespersons 1,000 Share capital subscriptions receivable 4,600 Accounts payable for merchandise P 19,250 Unpaid salaries 3,300 Credit balance in customer accounts 2,000 Cash received in advance from customers for goods not yet shipped 450 Expected bad debts, cumulative 500 Required:1. Give the journal entry to eliminate the above account and to set up the appropriateaccounts to replace it.
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