Duct Company reported the following account balances and related information on December 31, 2019 Cash 3,700,000 Accounts receivable 1,500,000 Allowance for doubtful accounts 200,000 Inventory 2,000,000 Prepaid expenses 300,000 Total current assets 7,400,000 Analysis of cash: Cash in bank 1,300,000 Bank overdraft in another bank 300,000 Cash set aside for plant addition 2,000,000 Petty cash fund 10,000 Cash withheld from wages 190,000 General cash 500,000 Total cash 3,700,000 The accounts receivable included past due accounts in the amount of P100,000. The account is deemed uncollectible and should be written off. The Inventory included goods held on consignment amounting to P150,000 and goods of P200,000 purchased and received on Dec. 21, 2019. Neither of these items have been recorded as purchase. The prepaid insurance included cash surrender value of life insurance of P50,000.What is the adjusted cash balance? a. P2,000,000 b. P1,700,000 c. P4,000,000 d. P2,300,000
Duct Company reported the following account balances and related information on December 31, 2019
|
Cash |
3,700,000 |
|
|
1,500,000 |
|
Allowance for doubtful accounts |
200,000 |
|
Inventory |
2,000,000 |
|
Prepaid expenses |
300,000 |
|
Total current assets |
7,400,000 |
|
Analysis of cash: |
|
|
Cash in bank |
1,300,000 |
|
Bank overdraft in another bank |
300,000 |
|
Cash set aside for plant addition |
2,000,000 |
|
Petty cash fund |
10,000 |
|
Cash withheld from wages |
190,000 |
|
General cash |
500,000 |
|
Total cash |
3,700,000 |
The accounts receivable included past due accounts in the amount of P100,000. The account is deemed uncollectible and should be written off. The Inventory included goods held on consignment amounting to P150,000 and goods of P200,000 purchased and received on Dec. 21, 2019. Neither of these items have been recorded as purchase. The prepaid insurance included cash surrender value of life insurance of P50,000.What is the adjusted cash balance?
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