The account of ABC Corp. prepared a statement of affairs. Total assets which there are no claims or liens are expected to produce P2,100,000. Unsecured claims of all classes totaled to P3,150,000. The following are claims deemed outstanding: Accrued salaries. P45,000 Unrecorded note for P30,000, on which P1,800 of interest has accrued A note for P90,000 secured by P120,000 receivable, estimated to be 60% collectible A P45,000 note on which P900 interest has accrued with a property having book value of P30,000 and a market value of P54,000 is pledged to guarantee payment of principal and interest. Unpaid income taxes of P105,000. What is the amount realized by partially secured creditors? Group of answer choices P83,160 P72,000 P90,000 P83,700
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
The account of ABC Corp. prepared a statement of affairs. Total assets which there are no claims or liens are expected to produce P2,100,000. Unsecured claims of all classes totaled to P3,150,000.
The following are claims deemed outstanding:
- Accrued salaries. P45,000
- Unrecorded note for P30,000, on which P1,800 of interest has accrued
- A note for P90,000 secured by P120,000 receivable, estimated to be 60% collectible
- A P45,000 note on which P900 interest has accrued with a property having book value of P30,000 and a market value of P54,000 is pledged to guarantee payment of principal and interest.
- Unpaid income taxes of P105,000.
What is the amount realized by partially secured creditors?
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