At year-end, Harem Company reported accounts receivableof P8,200,000 with the following analysis:Problem 4-11 (PHILCPA Adapted)100,000400,0001,000,000Accounts known to be worthlessAdvance payments on purchase ordersAdvances to subsidiaryCustomers' accounts reporting credit balances arisingfrom sales returnsTrade accounts receivableSubscription receivable due in 30 daysTrade installments receivable due 1-18 months,including unearned finance charge of P50,000Trade accounts receivable from officers, due currentlyTrade accounts on which postdated checks are held andno entries were made on receipt of checks( 600,000)3,500,0002,200,000850,000150,000200,000What is the correct balance of trade accounts receivable?a. 4,650,000b. 4,700,000c. 4,150,000d. 4,050,000128 Problem 4-5 (IAA)On June 15, 2020, Romela Company sold 100 air conditioningunits. The sale price for each unit is P45,000.All of sales are subject to terms 2/10, n30. The entity usedthe gross method of accounting for accounts receivable.Required:1. Prepare journal entry to record the sale.2. Prepare journal entry to record receipt of the paymentassuming the correct amount was received on June 25, 2020.3. Prepare the journal entry to record receipt of the paymentassuming the correct amount was received on July 10, 2020.125

Name: At year-end, Harem Company reported accounts receivableof P8,200,000
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Description: At year-end, Harem Company reported accounts receivableof P8,200,000 with the following analysis:Problem 4-11 (PHILCPA Adapted)100,000400,0001,000,000Accounts known to be worthlessAdvance payments on purchase ordersAdvances to subsidiaryCustomers' a

Gross method June 15th 2020 Journal entry for sales Account receivables Dr P4500000…

Business

Accounting

Problem 4-5 (IAA) On June 15, 2020, Romela Company sold 100 air conditioning units. The sale price for each unit is P45,000. All of sales are subject to terms 2/10, n30. The entity used the gross method of accounting for accounts receivable. Required: 1. Prepare journal entry to record the sale. 2. Prepare journal entry to record receipt of the payment assuming the correct amount was received on June 25, 2020. 3. Prepare the journal entry to record receipt of the payment assuming the correct amount was received on July 10, 2020.

Problem 4-5 (IAA) On June 15, 2020, Romela Company sold 100 air conditioning units. The sale price for each unit is P45,000. All of sales are subject to terms 2/10, n30. The entity used the gross method of accounting for accounts receivable. Required: 1. Prepare journal entry to record the sale. 2. Prepare journal entry to record receipt of the payment assuming the correct amount was received on June 25, 2020. 3. Prepare the journal entry to record receipt of the payment assuming the correct amount was received on July 10, 2020.

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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