DND Inc.'s December 31,2021 statement of financial position reported the following current assets: Cash, excluding payroll fund of P200,000 Accounts receivable Inventory Deferred tax assets including prepaid tax of P100,000 P 4,300,000 7,500,000 4,000,000 1,200,000 P17,000,000 An analysis of the accounts receivable disclosed that accounts receivable comprised the following: Trade accounts receivable Allowance for doubtful accounts Selling price of DND's unsold goods sent to Tar Inc. on consignment P 5,000,000 (500,000) at 150% of cost and excluded from DND's ending inventory_3,000,000 P7,500,000 On December 31,2021, what amount should be reported as total current assets?

DND Inc.'s December 31,2021 statement of financial position reported the following current assets: Cash, excluding payroll fund of P200,000 Accounts receivable Inventory Deferred tax assets including prepaid tax of P100,000 P 4,300,000 7,500,000 4,000,000 1,200,000 P17,000,000 An analysis of the accounts receivable disclosed that accounts receivable comprised the following: Trade accounts receivable Allowance for doubtful accounts Selling price of DND's unsold goods sent to Tar Inc. on consignment P 5,000,000 (500,000) at 150% of cost and excluded from DND's ending inventory_3,000,000 P7,500,000 On December 31,2021, what amount should be reported as total current assets?

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

DND Inc.'s December 31,2021 statement of financial position reported the following current
assets:
Cash, excluding payroll fund of P200,000
Accounts receivable
Inventory
Deferred tax assets including prepaid tax of P100,000
P 4,300,000
7,500,000
4,000,000
1,200,000
P17,000,000
An analysis of the accounts receivable disclosed that accounts receivable comprised the
following:
Trade accounts receivable
Allowance for doubtful accounts
Selling price of DND's unsold goods sent to Tar Inc. on consignment
P 5,000,000
(500,000)
at 150% of cost and excluded from DND's ending inventory 3,000,000
P7,500,000
On December 31,2021, what amount should be reported as total current assets?

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