Milky Way Inc. provided the following information on December 31, 2021: P 900,000 2,500,000 1,300,000 750,000 500,000 Employee income taxes withheld.... Cash balance at BPI-Leon Guinto Branch Cash overdraft at BDO-A. Mabini Branch. Accounts receivable with credit balance.. Estimated amount of meeting warranties... Estimated damages as a result of unsatisfactory... 1,500,000 Accounts payable... Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installments of P 500,000 due April land October 1 of each, the last bond to be paid on October 1, 2027. Interest is also paid semi-annually.. 3,000,000 5,000,000 What amount should be reported as total current liabilities on December 31, 2021?

Milky Way Inc. provided the following information on December 31, 2021: P 900,000 2,500,000 1,300,000 750,000 500,000 Employee income taxes withheld.... Cash balance at BPI-Leon Guinto Branch Cash overdraft at BDO-A. Mabini Branch. Accounts receivable with credit balance.. Estimated amount of meeting warranties... Estimated damages as a result of unsatisfactory... 1,500,000 Accounts payable... Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installments of P 500,000 due April land October 1 of each, the last bond to be paid on October 1, 2027. Interest is also paid semi-annually.. 3,000,000 5,000,000 What amount should be reported as total current liabilities on December 31, 2021?

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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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

100%

Milky Way Inc. provided the following information on December 31, 2021:
.P 900,000
Employee income taxes withheld...
Cash balance at BPI-Leon Guinto Branch.
2,500,000
1,300,000
750,000
500,000
Cash overdraft at BDO-A. Mabini Branch.
Accounts receivable with credit balance.
Estimated amount of meeting warranties..
Estimated damages as a result of unsatisfactory... 1,500,000
Accounts payable....
Deferred serial bonds, issued at par and bearing
interest at 12%, payable in semi-annual
installments of P 500,000 due April land
October 1 of each, the last bond to be paid
on October 1, 2027. Interest is also paid
semi-annually. .
3,000,000
5,000,000
What amount should be reported as total current liabilities on December 31, 2021?

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