ExercisesExercise 1When examining the accounts of Tripoli Company, you ascertain thatbalances relating to both receivables and payables are included in a singlecontrolling account (called receivables), which has a P23,050 debit balance.An analysis of the details of this account revealed the following:ItemscustomersAccounts receivableAccounts receivable - officers(current collection expected)Debit balances-creditorsExpense advances to salespersonsShare capital subscriptions receivableAccounts payable for merchandiseUnpaid salariesCredit balance in customer accountsCash received in advance from customers for goodsnot yet shippedExpected bad debts, cumulativeDebitP40,0002,5004501,0004,600CreditP 19,2503,3002,000450500Required:1. Give the journal entry to eliminate the above account and to set up theappropriate accounts to replace it.2.How should the items be reported on Tripoli Company's statement offinancial position?

Journal entry to eliminate the receivables controlling account and set up appropriate accounts:…

Required: 1. Give the journal entry to eliminate the above account and to set up the appropriate accounts to replace it. 2. How should the items be reported on Tripoli Company's statement of financial position?

Required: 1. Give the journal entry to eliminate the above account and to set up the appropriate accounts to replace it. 2. How should the items be reported on Tripoli Company's statement of financial position?

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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Question

Exercises
Exercise 1
When examining the accounts of Tripoli Company, you ascertain that
balances relating to both receivables and payables are included in a single
controlling account (called receivables), which has a P23,050 debit balance.
An analysis of the details of this account revealed the following:
Items
customers
Accounts receivable
Accounts receivable - officers
(current collection expected)
Debit balances-creditors
Expense advances to salespersons
Share capital subscriptions receivable
Accounts payable for merchandise
Unpaid salaries
Credit balance in customer accounts
Cash received in advance from customers for goods
not yet shipped
Expected bad debts, cumulative
Debit
P40,000
2,500
450
1,000
4,600
Credit
P 19,250
3,300
2,000
450
500
Required:
1. Give the journal entry to eliminate the above account and to set up the
appropriate accounts to replace it.
2.
How should the items be reported on Tripoli Company's statement of
financial position?

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