Existence of Accounts Receivable To substantiate the existence of the accounts receivable balances as at December 31, 2020 of Guipetacio 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. Customer Balances per Books (in PHP) Comments from customers Audit Findings Abejo 50,000 P30,000 on January 2, 2021. Correct balance is 20,000. Returned goods received January 5, 2021. Pacturan 10,000 Your credit memo representing price adjustment dated December 29. 2020 cancels this. The credit memo was taken up by Pacturan in 2021 Badilla 48,000 You have overpriced us by P50. Correct price should be P100. The complaint is valid. Villaranda 37,500 We received the goods only on January 5, 2021. Term is shipping point shipped in 2020. Dacer 45,000 Balance was offset by our December shipment of your raw materials. Guipetacio credited accounts payable for P45,000 to record purchases. Dacer is supplier. Required: Prepare the adjusting journal entry to correct the receivable from Dacer.
Existence of Accounts Receivable To substantiate the existence of the accounts receivable balances as at December 31, 2020 of Guipetacio 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. Customer Balances per Books (in PHP) Comments from customers Audit Findings Abejo 50,000 P30,000 on January 2, 2021. Correct balance is 20,000. Returned goods received January 5, 2021. Pacturan 10,000 Your credit memo representing price adjustment dated December 29. 2020 cancels this. The credit memo was taken up by Pacturan in 2021 Badilla 48,000 You have overpriced us by P50. Correct price should be P100. The complaint is valid. Villaranda 37,500 We received the goods only on January 5, 2021. Term is shipping point shipped in 2020. Dacer 45,000 Balance was offset by our December shipment of your raw materials. Guipetacio credited accounts payable for P45,000 to record purchases. Dacer is supplier. Required: Prepare the adjusting journal entry to correct the receivable from Dacer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Existence of
To substantiate the existence of the accounts receivable balances as at December 31, 2020 of Guipetacio 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.
| Customer | Balances per Books (in PHP) | Comments from customers | Audit Findings |
| Abejo | 50,000 | P30,000 on January 2, 2021. Correct balance is 20,000. |
Returned goods received January 5, 2021. |
| Pacturan | 10,000 | Your credit memo representing price adjustment dated December 29. 2020 cancels this. |
The credit memo was taken up by Pacturan in 2021 |
| Badilla | 48,000 | You have overpriced us by P50. Correct price should be P100. |
The complaint is valid. |
| Villaranda | 37,500 | We received the goods only on January 5, 2021. |
Term is shipping point shipped in 2020. |
| Dacer | 45,000 | Balance was offset by our December shipment of your raw materials. |
Guipetacio credited accounts payable for P45,000 to record purchases. Dacer is supplier. |
Required:
Prepare the
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