The following data pertain to Philippine Long Distance Telephone Company (PLDT) on December 31, 2019: Current account at Metrobank P1,800,000 Current account at Allied Bank (100,000) Payroll account 500,000 Foreign bank account ( in equivalent pesos) 800,000 Savings deposit in a closed bank 150,000 Postage stamps 1,000 Employee’s post dated checks 4,000 IOU from employees 10,000 Debit memo from a vendor for a purchase return 20,000 Traveler’s check 50,000 Money order 30,000 Petty cash fund (P4,000 in currency and Expense receipts for P6,000) 10,000 Pension fund 2,000,000 DAIF check of customer 15,000 Customers check dated 1/1/20 80,000 Time deposit – 30 days 200,000 Money market placement (due 6/30/20) 500,000 Treasury bills, due 3/31/20 (purchased 12/31/19) 200,000 Treasury bills, due 1/31/20 (purchased 1/1/19) 300,000 Uncashed tax refund check 550,000 Commercial paper maturing in four months 1,200,000 Employee travel advance 75,000 Compute the cash and cash equivalents that should be reported on the December 31, 2019 balance sheet. ___________
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 following data pertain to Philippine Long Distance Telephone Company (PLDT) on
December 31, 2019:
Current account at Metrobank P1,800,000
Current account at Allied Bank (100,000)
Payroll account 500,000
Foreign bank account ( in equivalent pesos) 800,000
Savings deposit in a closed bank 150,000
Postage stamps 1,000
Employee’s post dated checks 4,000
IOU from employees 10,000
Debit memo from a vendor for a purchase return 20,000
Traveler’s check 50,000
Money order 30,000
Petty cash fund (P4,000 in currency and
Expense receipts for P6,000) 10,000
Pension fund 2,000,000
DAIF check of customer 15,000
Customers check dated 1/1/20 80,000
Time deposit – 30 days 200,000
Treasury bills, due 3/31/20 (purchased 12/31/19) 200,000
Treasury bills, due 1/31/20 (purchased 1/1/19) 300,000
Uncashed tax refund check 550,000
Commercial paper maturing in four months 1,200,000
Employee travel advance 75,000
Compute the cash and cash equivalents that should be reported on the December 31, 2019
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