Accounts payable per general ledger control amounted to P5,440,000, net of P240,000 debit balances in suppliers' accounts. The unpaid voucher file included the following items that not had been recorded as of December 31, 2021: a) A Company - P242,000 merchandise shipped on December 31, 2021, FOB destination, received on January 10, 2022 b) B, Inc. - P192,000 merchandise shipped on December 26, 2021, FOB shipping point; received on January 16, 2022 c) C Super Services - P156,000 janitorial services for the three-month period ending January 31, 2022 d) MERALCO-P67,200 electric bill covering the period December 16, 2021 to January 15, 2022. On December 28, 2021, a supplier authorized Sonic to return goods billed at P160,000 and shipped on December 20, 2021. The goods were returned by Sonic on December, 28, 2021, but the P160,000 credit memo was not received until January 6, 2022. What is the total current liabilities?
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Accounts payable per general ledger control amounted to P5,440,000, net of P240,000 debit balances in suppliers' accounts. The unpaid voucher file included the following items that not had been recorded as of December 31, 2021:
a) A Company - P242,000 merchandise shipped on December 31, 2021, FOB destination, received on January 10, 2022
b) B, Inc. - P192,000 merchandise shipped on December 26, 2021, FOB shipping point; received on January 16, 2022
c) C Super Services - P156,000 janitorial services for the three-month period ending January 31, 2022
d) MERALCO-P67,200 electric bill covering the period December 16, 2021 to January 15, 2022. On December 28, 2021, a supplier authorized Sonic to return goods billed at P160,000 and shipped on December 20, 2021.
The goods were returned by Sonic on December, 28, 2021, but the P160,000 credit memo was not received until January 6, 2022. What is the total current liabilities?
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