In your audit of ABC Co., you noted that the company's balance sheet shows the accounts receivable balance at December 31, 2005 as follows: Accounts receivable P3,600,000 Allowance for doubtful accounts 72,000 During 2006, transactions relating to the accounts were as follows: • Sales on account, P38,400,000. • Cash received from collection of current receivable totaled P31,360,000, after discount of P640,000 were allowed for prompt payment. • Customers' accounts of P160,000 were ascertained to be worthless and were written off. • Bad accounts previously written off prior to 2005 amounting to P40,000 were recovered. • The company decided to provide P184,000 for doubtful accounts by journal entry at the end of the year. • Accounts receivable of P5,600,000 have been pledged to a local bank on a loan of P3,200,000. Collections of P1,200,000 were made on these receivables (not included in the collections previously given) and applied as partial payment to the loan. 1. The accounts receivable as of December 31, 2006 is 2. The net realizable value of accounts receivable as of December 31. 2006 is
In your audit of ABC Co., you noted that the company's balance sheet shows the
Accounts receivable P3,600,000
Allowance for doubtful accounts 72,000
During 2006, transactions relating to the accounts were as follows:
• Sales on account, P38,400,000.
• Cash received from collection of current receivable totaled P31,360,000, after
discount of P640,000 were allowed for prompt payment.
• Customers' accounts of P160,000 were ascertained to be worthless and were written off.
• Bad accounts previously written off prior to 2005 amounting to P40,000 were recovered.
• The company decided to provide P184,000 for doubtful accounts by
• Accounts receivable of P5,600,000 have been pledged to a local bank on a loan of P3,200,000. Collections of P1,200,000 were made on these receivables (not included in the collections previously given) and applied as partial payment to the loan.
1. The accounts receivable as of December 31, 2006 is
2. The net realizable value of accounts receivable as of December 31. 2006 is
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