The following information was the unadjusted balances extracted from Stiffany Hats and Dresses' books on December 31, 2020: Trade receivables P500,000 Allowance for doubtful accounts (20,000) Notes receivable, to be collected in July 2022 100,000 Receivable from employees 50,000 Advance payments to Trixie Garments, a supplier 30,000 A check payable to Stiffany Hats and Dresses amounting to P50,000 was dated January 1, 2021 and was included in the Company's trade receivables. The receivable from Stiff Hair Salon, a related party, amounting to P10,000 is to be written off. What is the total trade and other receivables to be reported on December 31, 2020?
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 information was the unadjusted balances extracted from Stiffany Hats and Dresses' books on December 31, 2020:
Trade receivables P500,000
Allowance for doubtful accounts (20,000)
Notes receivable, to be collected in July 2022 100,000
Receivable from employees 50,000
Advance payments to Trixie Garments, a supplier 30,000
A check payable to Stiffany Hats and Dresses amounting to P50,000 was dated January 1, 2021 and was included in the Company's trade receivables.
The receivable from Stiff Hair Salon, a related party, amounting to P10,000 is to be written off.
What is the total trade and other receivables to be reported on December 31, 2020?
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