FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Your audit disclosed that on December 31, 2021, the accounts receivable control account of Eileen Company had a balance of P 2,865,000. An analysis of the accounts receivable  account showed the following:

Accounts known to be worthless

P      37,500

Advance payments to creditors on purchase orders

       150,000

Advances to affiliated companies

       375,000

Customer’s accounts reporting credit balances arising from sales return

 

     (225,000)

Interest receivable on bonds

      150,000

Other trade accounts receivable -unassigned

      750,000

Trade accounts  receivable – assigned ( Eileen Company’s equity in assigned accounts is P 150,000)

 

      375,000

Subscription receivables due in 30 days

      825,000

    

Trade installment receivable due 1-18 months including unearned finance charges of P 30,000

 

      330,000

Trade receivables from officers due currently

        22,500

Trade accounts on which post-dated checks are held (no entries were made on receipts of checks)

 

        75,000

Total

P 2,865,000

 

1. The trade accounts receivable balance as at December 31, 2021 is

A. P 1,522,500

B. P 1,147,500

C. P 1,485,000

D. p 1,447,500

2. The net current trade and other receivables as at December 31, 2021 is

A. P 1,822,500

B. P 2,272,500

C. P 2,647,500

D. P 2,610,000

3. How much of the foregoing will be presented under noncurrent assets as at December 31, 2021?

A. P 0

B. P 375,000

C. P 525,000

D. P 1,200,000

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