The SWIPE Company's Account Receivable Control Accounts had balance of P2,865,000, which the accountant had a difficulty in identifying the classification of accounts either current or non-current. The details of the accounts receivable is presented below as of December 31, 2019: Accounts known to be worthless 37,500.00 Advance payments to creditors or purchase order 150,000.00 Advances to affiliated companies 375,000.00 Customer's accounts reporting credit balances arising from sales return (225,000.00) Interest Receivable on Bonds 150,000.00 Other Trade receivable - unassigned 750,000.00 Subscription receivable due in 30 days 825,000.00 Trade Account Receivable assigned (BC Company's equity in assigned accounts is P150,000) 375,000.00 Trade Installment Receivable due 1-18 months, including unearned finance charges of P30,000 330,000.00 Trade receivable from officers due currently 22,500.00 Trade account on which post-dated checks are held (no entries were made on receipts of check) 75,000.00 TOTAL 2,865,000.00 Kindly answer the following and show the solution: 1. How much should be presented as Trade Receivable? 2. Based on the problem above, how much is the net current trade and other receivables as of December 31, 2019? 3. Based on the problem above, how much should be presented under noncurrent asset as of December 31, 2019?
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The SWIPE Company's Account Receivable Control Accounts had balance of P2,865,000, which the accountant had a difficulty in identifying the classification of accounts either current or non-current. The details of the |
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Accounts known to be worthless |
37,500.00 |
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Advance payments to creditors or purchase order |
150,000.00 |
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Advances to affiliated companies |
375,000.00 |
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Customer's accounts reporting credit balances arising from sales return |
(225,000.00) |
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Interest Receivable on Bonds |
150,000.00 |
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Other Trade receivable - unassigned |
750,000.00 |
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Subscription receivable due in 30 days |
825,000.00 |
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Trade Account Receivable assigned (BC Company's equity in assigned accounts is P150,000) |
375,000.00 |
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Trade Installment Receivable due 1-18 months, including unearned finance charges of P30,000 |
330,000.00 |
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Trade receivable from officers due currently |
22,500.00 |
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Trade account on which post-dated checks are held (no entries were made on receipts of check) |
75,000.00 |
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TOTAL |
2,865,000.00 |
Kindly answer the following and show the solution:
1. How much should be presented as Trade Receivable?
2. Based on the problem above, how much is the net current trade and other receivables as of December 31, 2019?
3. Based on the problem above, how much should be presented under noncurrent asset as of December 31, 2019?
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