The allowance for doubtful accounts had a credit balance ofDreamer Company reported the "Receivables" account withProblem 4-1 (IAA)Deeamer Company reported the "Receivables" account witha debit balance of P2,000,000 at year-end.ofP50,000 on same date.Subsidiary details revealed the following:leTrade accounts receivableTrade notes receivableInstallments receivable, normally due 1 year to two yearsCustomers' accounts reporting credit775,000100,000300,000ts.balances arising from sales returnAdvance payments for purchase of merchandise30,000)150,000adCustomers' accounts reporting creditbalances arising from advance paymentsCash advance to subsidiaryforClaim from insurance entitySubscriptions receivable due in 60 daysAccrued interest receivable( 20,000)400,00015,000300,00010,0002,000,000Required:choa. Prepare one compound entry to reclassify the receivablesaccount.b. Compute the amount to be presented as "trade and otherreceivables" under current assets.c. Indicate the classification and presentation of the otheritems excluded from "trade and other receivables".th

Dreamer Company's Receivables account has debit balance = P2000000 at year end Doubtful debts has…

Dreamer Company reported the "Receivables" account with a debit balance of P2,000,000 at year-end. The allowance for doubtful accounts had a credit balance of P50,000 on same date. Subsidiary details revealed the following: 775,000 100,000 300,000 Trade accounts receivable Trade notes receivable Installments receivable, normally due 1 year to two years Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise Customers' accounts reporting credit balances arising from advance payments. Cash advance to subsidiary Claim from insurance entity Subscriptions receivable due in 60 days Accrued interest receivable ( 30,000) 150,000 ( 20,000) 400,000 15,000 300,000 10,000 2,000,000 Required: a. Prepare one compound entry to reclassify the receivables account. b. Compute the amount to be presented as "trade and other receivables" under current assets. c. Indicate the classification and presentation of the other items excluded from "trade and other receivables".

Dreamer Company reported the "Receivables" account with a debit balance of P2,000,000 at year-end. The allowance for doubtful accounts had a credit balance of P50,000 on same date. Subsidiary details revealed the following: 775,000 100,000 300,000 Trade accounts receivable Trade notes receivable Installments receivable, normally due 1 year to two years Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise Customers' accounts reporting credit balances arising from advance payments. Cash advance to subsidiary Claim from insurance entity Subscriptions receivable due in 60 days Accrued interest receivable ( 30,000) 150,000 ( 20,000) 400,000 15,000 300,000 10,000 2,000,000 Required: a. Prepare one compound entry to reclassify the receivables account. b. Compute the amount to be presented as "trade and other receivables" under current assets. c. Indicate the classification and presentation of the other items excluded from "trade and other receivables".

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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