Problem Dreamer Company reported the "Receivables" account with a debit balance of P2,000,000 at year-end. The allowance for doubtful accounts had a credit balance of P50,000 on same date. Subsidiary details revealed the following: Trade accounts receivable Trade notes receivable Installments receivable, normally due 1 year to two years Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise Customers' accounts reporting credit balances arising from advance payments. Cash advance to subsidiary Claim from insurance entity Subscriptions receivable due in 60 days Accrued interest receivable 775,000 100,000 300,000 ( 30,000) 150,000 ( 20,000) 400,000 15,000 300,000 10,000 2,000,000 Required: L Prepare one compound entry to reclassify the receivables account. . Compute the amount to be presented as “trade and other receivables" under current assets. -Indicate the classification and presentation of the other items excluded from "trade and other receivables".
Problem Dreamer Company reported the "Receivables" account with a debit balance of P2,000,000 at year-end. The allowance for doubtful accounts had a credit balance of P50,000 on same date. Subsidiary details revealed the following: Trade accounts receivable Trade notes receivable Installments receivable, normally due 1 year to two years Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise Customers' accounts reporting credit balances arising from advance payments. Cash advance to subsidiary Claim from insurance entity Subscriptions receivable due in 60 days Accrued interest receivable 775,000 100,000 300,000 ( 30,000) 150,000 ( 20,000) 400,000 15,000 300,000 10,000 2,000,000 Required: L Prepare one compound entry to reclassify the receivables account. . Compute the amount to be presented as “trade and other receivables" under current assets. -Indicate the classification and presentation of the other items excluded from "trade and other receivables".
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The allowance for doubtful accounts had a credit balance of
Dreamer Company reported the "Receivables" account with
Problem 4-1 (IAA)
a debit balance of P2,000,000 at year-end.
P50,000 on same date.
Subsidiary details revealed the following:
le
Trade accounts receivable
Trade notes receivable
Installments receivable, normally due 1 year to two years
Customers' accounts reporting credit
balances arising from sales return
Advance payments for purchase of merchandise
775,000
100,000
300,000
( 30,000)
150,000
ad
Customers' accounts reporting credit
balances arising from advance payments .
Cash advance to subsidiary
for
( 20,000)
400,000
15,000
300,000
10,000
Claim from insurance entity
Subscriptions receivable due in 60 days
Accrued interest receivable
2,000,000
Required:
a. Prepare one compound entry to reclassify the receivables
account.
b. Compute the amount to be presented as "trade and other
receivables" under current assets.
c. Indicate the classification and presentation of the other
items excluded from "trade and other receivables".
th
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