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On the December 31, 2020 statement of financial position of Babe Co., the current receivables consisted of the following: Trade accounts receivable- P75,000 Allowance for uncollectible accounts- P2,000 Claim against shipper for goods lost in transit (November 2020)- P3,000 Selling price of unsold goods sent by Babe on consignment at 130% of cost (not included in Babe ‘s ending inventory)- P26,000 Security deposit on lease of warehouse used for storing some inventories- P30,000   At December 31, 2020, the correct total of Babe’s current net receivables was A. P132,000 B. P106,000 C. P102,000 D. P76,000

On the December 31, 2020 statement of financial position of Babe Co., the current receivables consisted of the following: Trade accounts receivable- P75,000 Allowance for uncollectible accounts- P2,000 Claim against shipper for goods lost in transit (November 2020)- P3,000 Selling price of unsold goods sent by Babe on consignment at 130% of cost (not included in Babe ‘s ending inventory)- P26,000 Security deposit on lease of warehouse used for storing some inventories- P30,000   At December 31, 2020, the correct total of Babe’s current net receivables was A. P132,000 B. P106,000 C. P102,000 D. P76,000

FINANCIAL ACCOUNTING
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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On the December 31, 2020 statement of financial position of Babe Co., the current receivables consisted of the following:

  • Trade accounts receivable- P75,000
  • Allowance for uncollectible accounts- P2,000
  • Claim against shipper for goods lost in transit (November 2020)- P3,000
  • Selling price of unsold goods sent by Babe on consignment at 130% of cost (not included in Babe ‘s ending inventory)- P26,000
  • Security deposit on lease of warehouse used for storing some inventories- P30,000

 

At December 31, 2020, the correct total of Babe’s current net receivables was

A. P132,000

B. P106,000

C. P102,000

D. P76,000

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