Preblem 4-2 (IAA)Credible Company provided the following T-accountsummarizing the transactions affecting the accounts receivablefor the current year:Accounts Receivable600,000 Collections from customers 5,300,0006,000,000 WriteoffJan. 1 balanceCharge salesShareholders'- subscriptionsDeposit on contractClaims against commoncarrier for damagesIOUS from employeesCash advance to affiliates 100,000Advances to a supplier35,000Merchandise returns40,000200,000| Allowances to customerfor shipping damages120,00025,000Collections on carrier claims40,000100,000 Collection on subscriptions50,00010,00050,000Required:a. Compute the correct amount of accounts receivable.b. Prepare one compound entry to adjust the accounts receivable.c. Compute the amount to be presented as "trade and otherreceivables" under current assets.d. Indicate the classification and presentation of the other items.

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Credible Company provided the following T-account summarizing the transactions affecting the accounts receivable for the current year: Accounts Receivable 600,000 Collections from customers 5,300,000 6,000,000 Writeoff Jan. 1 balance Charge sales Shareholders' subscriptions Deposit on contract Claims agàinst common carrier for damages IOUS from employees 35,000 Merchandise returns 200,000 Allowances to customer for shipping damages 40,000 120,000 25,000 40,000 Collections on carrier claims 100,000 Collection on subscriptions 50,000 10,000 Cash advance to affiliates 100,000 Advances to a supplier 50,000 Required: a. Compute the correct amount of accounts receivable. b. Prepare one compound entry to adjust the accounts receivable. c. Compute the amount to be presented as "trade and other receivables" under current assets. d. Indicate the classification and presentation of the other items.

Credible Company provided the following T-account summarizing the transactions affecting the accounts receivable for the current year: Accounts Receivable 600,000 Collections from customers 5,300,000 6,000,000 Writeoff Jan. 1 balance Charge sales Shareholders' subscriptions Deposit on contract Claims agàinst common carrier for damages IOUS from employees 35,000 Merchandise returns 200,000 Allowances to customer for shipping damages 40,000 120,000 25,000 40,000 Collections on carrier claims 100,000 Collection on subscriptions 50,000 10,000 Cash advance to affiliates 100,000 Advances to a supplier 50,000 Required: a. Compute the correct amount of accounts receivable. b. Prepare one compound entry to adjust the accounts receivable. c. Compute the amount to be presented as "trade and other receivables" under current assets. d. Indicate the classification and presentation of the other items.

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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