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

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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…

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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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

At year-end, Harem Company reported accounts receivable
of P8,200,000 with the following analysis:
Problem 4-11 (PHILCPA Adapted)
100,000
400,000
1,000,000
Accounts known to be worthless
Advance payments on purchase orders
Advances to subsidiary
Customers' accounts reporting credit balances arising
from sales returns
Trade accounts receivable
Subscription receivable due in 30 days
Trade installments receivable due 1-18 months,
including unearned finance charge of P50,000
Trade accounts receivable from officers, due currently
Trade accounts on which postdated checks are held and
no entries were made on receipt of checks
( 600,000)
3,500,000
2,200,000
850,000
150,000
200,000
What is the correct balance of trade accounts receivable?
a. 4,650,000
b. 4,700,000
c. 4,150,000
d. 4,050,000
128

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.
125

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Do a journal entry based on this transections, round interest amounts to the nearest dollar,
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