5. Entity A has an account receivable of P200,000 from Entity B. In addition, Entity A also has an account payable of P160,000 to Entity B. The account receivable is due in 30 days while the account payable is due in 90 days. Entity A intends to settle first the account receivable. If Entity A has a legal right of set- off, how much account receivable will be shown in its statement of financial position? a. 200,000 c. 160,000 b. 40,000 d. a or b
5. Entity A has an account receivable of P200,000 from Entity B. In addition, Entity A also has an account payable of P160,000 to Entity B. The account receivable is due in 30 days while the account payable is due in 90 days. Entity A intends to settle first the account receivable. If Entity A has a legal right of set- off, how much account receivable will be shown in its statement of financial position? a. 200,000 c. 160,000 b. 40,000 d. a or b
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Offsetting
5. Entity A has an account receivable of P200,000 from Entity B.
In addition, Entity A also has an account payable of P160,000
to Entity B. The account receivable is due in 30 days while the
account payable is due in 90 days. Entity A intends to settle
first the account receivable. If Entity A has a legal right of set-
off, how much account receivable will be shown in its
statement of financial position?
c. 160,000
d. a or b
a. 200,000
b. 40,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac46ae03-5527-42fe-8e9a-36f02aa231b9%2Fb5dffaa5-7e67-4269-8624-d01a9550fd33%2Fl2os9tj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Offsetting
5. Entity A has an account receivable of P200,000 from Entity B.
In addition, Entity A also has an account payable of P160,000
to Entity B. The account receivable is due in 30 days while the
account payable is due in 90 days. Entity A intends to settle
first the account receivable. If Entity A has a legal right of set-
off, how much account receivable will be shown in its
statement of financial position?
c. 160,000
d. a or b
a. 200,000
b. 40,000
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