Homework Help is Here – Start Your Trial Now!
Business
Accounting
Darrell Asuncion You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a calendar year basis. The following data were found during your audit: a) Goods in transit shipped FOB destination by a supplier in the amount of P20,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded. b) Goods costing P10,000 had been received, included in inventory, and recorded as a purchase. However, your inspection revealed that the goods were found to be defective and would be immediately returned. c) Materials costing P50,000 and billed on December 30 at a selling price of P64,000, had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination. d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final inventory and invoiced on December 31 at P16,000. e) The sale of P30,000 worth of materials and costing P24,000 had been shipped FOB point of shipment on December 31. However, this inventory was found to be included in the final inventory. Further inspection of the client's records revealed the following December 31, 2021 balances: Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; Sales P1,010,000; Purchases; P640,000; Net income, P180,400. Questions: Based on the above and the result of your audit, determine the balances of the adjusted balance of accounts receivable, December 31, 2021. O P36,000 O P64,000 O P24,000 O P16,000

Darrell Asuncion You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a calendar year basis. The following data were found during your audit: a) Goods in transit shipped FOB destination by a supplier in the amount of P20,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded. b) Goods costing P10,000 had been received, included in inventory, and recorded as a purchase. However, your inspection revealed that the goods were found to be defective and would be immediately returned. c) Materials costing P50,000 and billed on December 30 at a selling price of P64,000, had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination. d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final inventory and invoiced on December 31 at P16,000. e) The sale of P30,000 worth of materials and costing P24,000 had been shipped FOB point of shipment on December 31. However, this inventory was found to be included in the final inventory. Further inspection of the client's records revealed the following December 31, 2021 balances: Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; Sales P1,010,000; Purchases; P640,000; Net income, P180,400. Questions: Based on the above and the result of your audit, determine the balances of the adjusted balance of accounts receivable, December 31, 2021. O P36,000 O P64,000 O P24,000 O P16,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
4G 40 23:37 Darrell Asuncion You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a calendar year basis. The following data were found during your audit: a) Goods in transit shipped FOB destination by a supplier in the amount of P20,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded. b) Goods costing P10,000 had been received, included in inventory, and recorded as a purchase. However, your inspection revealed that the goods were found to be defective and would be immediately returned. c) Materials costing P50,000 and billed on December 30 at a selling price of P64,000, had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination. d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final inventory and invoiced on December 31 at P16,000. e) The sale of P30,000 worth of materials and costing P24,000 had been shipped FOB point of shipment on December 31. However, this inventory was found to be included in the final inventory. Further inspection of the client's records revealed the following December 31, 2021 balances: Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; Sales P1,010,000; Purchases; P640,000; Net income, P180,400. Questions: Based on the above and the result of your audit, determine the balances of the adjusted balance of accounts receivable, December 31, 2021. P36,000 P64,000 P24,000 P16,000
Transcribed Image Text:4G 40 23:37 Darrell Asuncion You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a calendar year basis. The following data were found during your audit: a) Goods in transit shipped FOB destination by a supplier in the amount of P20,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded. b) Goods costing P10,000 had been received, included in inventory, and recorded as a purchase. However, your inspection revealed that the goods were found to be defective and would be immediately returned. c) Materials costing P50,000 and billed on December 30 at a selling price of P64,000, had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination. d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final inventory and invoiced on December 31 at P16,000. e) The sale of P30,000 worth of materials and costing P24,000 had been shipped FOB point of shipment on December 31. However, this inventory was found to be included in the final inventory. Further inspection of the client's records revealed the following December 31, 2021 balances: Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; Sales P1,010,000; Purchases; P640,000; Net income, P180,400. Questions: Based on the above and the result of your audit, determine the balances of the adjusted balance of accounts receivable, December 31, 2021. P36,000 P64,000 P24,000 P16,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS