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 35,000 Jan. 1 balance Charge sales Shareholders' 6,000,000 Writeoff 40,000 Merchandise returns - subscriptions Deposit on contract Claims against common carrier for damages IOUS from employees Cash advance to affiliates 100,000 Advances to a supplier 200,000 Allowances to customer for shipping damages Collections on carrier claims 40,000 25,000 120,000 50,000 100,000 Collection on subscriptions 10,000 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. с.
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 35,000 Jan. 1 balance Charge sales Shareholders' 6,000,000 Writeoff 40,000 Merchandise returns - subscriptions Deposit on contract Claims against common carrier for damages IOUS from employees Cash advance to affiliates 100,000 Advances to a supplier 200,000 Allowances to customer for shipping damages Collections on carrier claims 40,000 25,000 120,000 50,000 100,000 Collection on subscriptions 10,000 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. с.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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d. indicate the classification and presentation of the other items.
Transcribed Image Text:summarizing the transactions affecting the accounts receivable
Credible Company provided the following T-account
Problem 4-2 (IAA)
for the current year:
Accounts Receivable
600,000 Collections from customers 5,300.000
6,000,000 Writeoff
Jan. 1 balance
35,000
Charge sales
Shareholders'
- subscriptions
Deposit on contract
Claims against common
40,000
Merchandise returns
200,000 Allowances to customer
for shipping damages
Collections on carrier claims 40,000
25,000
120,000
100,000 Collection on subscriptions
10,000
50,000
carrier for damages
IOUS from employees
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.
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