On December 31, 2019 Ivan Company showed the following current assets: Cash 3,200,000 Accounts receivable 2,500,000 Inventory 2,000,000 Prepaid expenses 100,000 Details on cash and accounts receivable are as follows: Cash on hand, (including customer postdated check P50,000 and employees IOUs of P50,000) P 500,000 Cash in bank per bank statement (outstanding checks on December 31,2019 (P200,000) P2,700,000 Total cash P3,200,000 Customer’s debit balances, net of customer deposit of P50,000 P1,900,000 Allowance for doubtful accounts ( 150,000) Sales price of goods invoiced to customers At 150% of cost on Dec.29,2019 but delivered on January 15, 2020 and excluded from reported Inventory, P750,000 Total accounts receivable P2,500,000 What is the adjusted balance of accounts receivable? a. P1,950,000 b. P2,000,000 c. P1,850,000 d. P1,800,000
On December 31, 2019 Ivan Company showed the following current assets: Cash 3,200,000 Accounts receivable 2,500,000 Inventory 2,000,000 Prepaid expenses 100,000 Details on cash and accounts receivable are as follows: Cash on hand, (including customer postdated check P50,000 and employees IOUs of P50,000) P 500,000 Cash in bank per bank statement (outstanding checks on December 31,2019 (P200,000) P2,700,000 Total cash P3,200,000 Customer’s debit balances, net of customer deposit of P50,000 P1,900,000 Allowance for doubtful accounts ( 150,000) Sales price of goods invoiced to customers At 150% of cost on Dec.29,2019 but delivered on January 15, 2020 and excluded from reported Inventory, P750,000 Total accounts receivable P2,500,000 What is the adjusted balance of accounts receivable? a. P1,950,000 b. P2,000,000 c. P1,850,000 d. P1,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On December 31, 2019 Ivan Company showed the following current assets:
Cash 3,200,000
Inventory 2,000,000
Prepaid expenses 100,000
Details on cash and accounts receivable are as follows: Cash on hand, (including customer postdated check P50,000 and employees IOUs of P50,000) P 500,000
Cash in bank per bank statement (outstanding checks on December 31,2019 (P200,000) P2,700,000
Total cash P3,200,000
Customer’s debit balances, net of customer deposit of P50,000 P1,900,000
Allowance for doubtful accounts ( 150,000)
Sales price of goods invoiced to customers At 150% of cost on Dec.29,2019 but delivered on January 15, 2020 and excluded from reported Inventory, P750,000
Total accounts receivable P2,500,000
What is the adjusted balance of accounts receivable?
a. P1,950,000
b. P2,000,000
c. P1,850,000
d. P1,800,000
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