ee the image below. Please provide some solutions so that I can verify that I solved the problem correctly. Question: The overstatement of receivable from Lazaro is
ee the image below. Please provide some solutions so that I can verify that I solved the problem correctly. Question: The overstatement of receivable from Lazaro is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
See the image below.
Please provide some solutions so that I can verify that I solved the problem correctly.
Question: The overstatement of receivable from Lazaro is
Transcribed Image Text:To substantiate the existence of the accounts receivable balances as at December 31, 2018, of
LUKAS COMPANY, you have decided to send confirmation requests to customers. Below is a
summary of the confirmation replies together with the exceptions and audit findings. Gross profit
on sales is 20%. The company is under the perpetual inventory method.
Balance
Name of
Customer Per Books
Comments
From Customers
Audit Findings
P150,000 P90,000 was returned on December 30, Returned goods were received
Concordia
2018. Correct balance is P60,000.
December 31, 2018.
Falcon
P30,000 Your CM representing price adjustment The CM was taken up by Lukas
dated December 28, 2018, cancels this.
P144,000 You have overpriced us by P150. Correct The complaint is valid.
Company in 2019.
Lazaro
price should be P300.
Silang
P112,500 We received the goods only on January 6, Term is shipping point.
2019.
Shipped in 2018.
P135,000 Balance was offset by our December Lukas
shipment of your raw materials.
Company credited
payable
P135,000 to record purchases.
Yakal
accounts
for
Yakal is a supplier.
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