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In your audit of Lidlidda Plastic Products Co., you noted that the company's statement of financial position shows the accounts receivable balance at December 31, 2020 as follows: ● Accounts receivable O Allowance for doubtful accounts ● duP3,600,000 1472,000 obte P3,528,000 IS JE 67.90 Bato fo During 2021, transactions relating to the accounts were as follows: 10.000. $1003 Sales on account, P38,400,000. est Cash received from collection of current receivable P31,360,000, after discount of P640,000 were allowed for prompt payment. totaled 4000,000 Customers' accounts of P160,000 were ascertained to be worthless and were written off. Bad accounts previously written off prior to 2021 amounting to P40,000 were recovered. pu The company decided to provide P184,000 for doubtful accounts by journal entry at the end of the year. Accounts receivable of P5,600,000 have been pledged to a local bank on a loan of P3,200,000. Collections of P1,200,000 were made on these receivables (not included in the collections previously given) and applied as partial payment to the loan.

In your audit of Lidlidda Plastic Products Co., you noted that the company's statement of financial position shows the accounts receivable balance at December 31, 2020 as follows: ● Accounts receivable O Allowance for doubtful accounts ● duP3,600,000 1472,000 obte P3,528,000 IS JE 67.90 Bato fo During 2021, transactions relating to the accounts were as follows: 10.000. $1003 Sales on account, P38,400,000. est Cash received from collection of current receivable P31,360,000, after discount of P640,000 were allowed for prompt payment. totaled 4000,000 Customers' accounts of P160,000 were ascertained to be worthless and were written off. Bad accounts previously written off prior to 2021 amounting to P40,000 were recovered. pu The company decided to provide P184,000 for doubtful accounts by journal entry at the end of the year. Accounts receivable of P5,600,000 have been pledged to a local bank on a loan of P3,200,000. Collections of P1,200,000 were made on these receivables (not included in the collections previously given) and applied as partial payment to the loan.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do journal entries for all the transaction

In your audit of Lidlidda Plastic Products Co., you noted that the company's statement of financial position shows the accounts receivable balance at December 31, 2020 as follows: ● Accounts receivable O Allowance for doubtful accounts ● duP3,600,000 1472,000 obte P3,528,000 IS JE 67.90 Bato fo During 2021, transactions relating to the accounts were as follows: 10.000. $1003 Sales on account, P38,400,000. est Cash received from collection of current receivable P31,360,000, after discount of P640,000 were allowed for prompt payment. totaled 4000,000 Customers' accounts of P160,000 were ascertained to be worthless and were written off. Bad accounts previously written off prior to 2021 amounting to P40,000 were recovered. pu The company decided to provide P184,000 for doubtful accounts by journal entry at the end of the year. Accounts receivable of P5,600,000 have been pledged to a local bank on a loan of P3,200,000. Collections of P1,200,000 were made on these receivables (not included in the collections previously given) and applied as partial payment to the loan.
Transcribed Image Text:In your audit of Lidlidda Plastic Products Co., you noted that the company's statement of financial position shows the accounts receivable balance at December 31, 2020 as follows: ● Accounts receivable O Allowance for doubtful accounts ● duP3,600,000 1472,000 obte P3,528,000 IS JE 67.90 Bato fo During 2021, transactions relating to the accounts were as follows: 10.000. $1003 Sales on account, P38,400,000. est Cash received from collection of current receivable P31,360,000, after discount of P640,000 were allowed for prompt payment. totaled 4000,000 Customers' accounts of P160,000 were ascertained to be worthless and were written off. Bad accounts previously written off prior to 2021 amounting to P40,000 were recovered. pu The company decided to provide P184,000 for doubtful accounts by journal entry at the end of the year. Accounts receivable of P5,600,000 have been pledged to a local bank on a loan of P3,200,000. Collections of P1,200,000 were made on these receivables (not included in the collections previously given) and applied as partial payment to the loan.
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