REQU 1. Determine the correct amount of the following as of Dec. 31, 2019: a. Trade receivables, current asset b. Trade receivables, other assets c. Non-trade receivables, current assets
REQU 1. Determine the correct amount of the following as of Dec. 31, 2019: a. Trade receivables, current asset b. Trade receivables, other assets c. Non-trade receivables, current assets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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REQUIRED:
1. Determine the correct amount of the following as of Dec. 31, 2019:
a. Trade receivables, current asset
b. Trade receivables, other assets
c. Non-trade receivables, current assets
d. Non-trade receivables, other assets
e. Other accounts (specify)
Exercise 2-7
of P76.000 Subaidi
or details reveal the following:
Transcribed Image Text:104
Exercise 2-6
Your analysis of Accounts Receivable carried at P2,406,750 on Dec. 31,
2019 shows the following:
1 PL.496,832 Debit balance in accounts with customers broken down as:
1. Installment account sales, 2015
2. Installment account sales, 2016
3. Installment account sales, 2017
4. Installment account sales, 2018
5. Installment account sales, 2019
P46,864
18,804
52,418
68,056
310,690
6. Regular account sales(2/10,n/30)
1.000,000
P1,496,832
Installment credit term: Four(4) years.
b.
32,082 Credit balance in accounts with customers.
C.
12,000 Cash deposit with RFM Co. representing a 10% down
payment a contract to buy merchandise in 2020.
20,000 Advances to employees to be liquidated in cash
10,000 Notes receivable (loan to employees granted 4-2-18 for two
d.
e.
years)
f.
140,000 Amount due on capital stock subscriptions of P300,000; no
due date.
100,000 Advances to Donna, president. This is covered by an
unsecured note due in two years to be offset against salary.
368,000 Shipment out to consignees. Only 60% of the consignment is
reported to be sold on Dec. 31, 2019. The total shipment cost
h.
P240,000.
40,000 Working fund advances to salesmen; 60% of the amount was
actually advanced to them; of the amount advanced 60% is not
spent yet by them as of Dec. 31, 2019.
180,000 Advances to subsidiary- Donna Don Co. Repayment is spread
out equally over the next four years.
34,000 Pre-dated billing of merchandise to be shipped in April, 2020.
i.
j.
14,000 Claims filed against MRR (approved and due on 3-14-20)
24,000 Merchandise ordered by customer under the term FOB
destination. Merchandise costing P16,000 is in transit as of
Merchandise cost P22,500.
1.
m.
Dec. 31, 2019.
P2,406,750
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