Honduras Company revealed a balance of P8,200,000 in the accounts receivable control account at year-end. An analysis of the accounts receivable showed the following: Accounts known to be worthless 100,000 Advance payments to creditors on purchase orders 400,000 Advances to affiliated entities 1,000,000 Customers' accounts reporting credit balances arising from sales returns -600,000 Interest recivable on bonds 400,000 Trade accounts receivable-unassigned 2,000,000 Subscription receivable due in 30 days 2,200,000 Trade accounts receivable-assigned (Finance Company's equity asigned accounts is P500,000) 1,500,000 Trade installments receivable due in 1-18 months, including unearned finance charge of P50,000 850,000 Trade accounts receivable from officers, due currently 150,000 Trade accounts on which postdated checks are held and no entries were made on receipt of checks 200,000 Total 8,200,000 What amounted should be reported as trade accounts receivable at year end? a. 4,650,000 b. 4,700,000 c. 4,150,000 d. 4,050,000

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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Honduras Company revealed a balance of P8,200,000 in the accounts receivable control account at year-end.

An analysis of the accounts receivable showed the following:

Accounts known to be worthless		100,000
Advance payments to creditors on purchase orders		400,000
Advances to affiliated entities		1,000,000
Customers' accounts reporting credit balances arising
	from sales returns	-600,000
Interest recivable on bonds		400,000
Trade accounts receivable-unassigned		2,000,000
Subscription receivable due in 30 days		2,200,000
Trade accounts receivable-assigned (Finance
	Company's equity asigned accounts is P500,000)	1,500,000
Trade installments receivable due in 1-18 months,
	including unearned finance charge of P50,000	850,000
Trade accounts receivable from officers, due currently		150,000
Trade accounts on which postdated checks are held
	and no entries were made on receipt of checks	200,000
Total		8,200,000

What amounted should be reported as trade accounts receivable at year end?
	a. 4,650,000
	b. 4,700,000
	c. 4,150,000
	d. 4,050,000

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