Concept explainers
Your audit disclosed that on December 31, 2021, the
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
Step by stepSolved in 2 steps with 2 images
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