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The unadjusted trial balance of Kate Fullo Company as at December 31, 2021 showed accounts receivable – trade with a balance of P693,000. Investigation revealed that it included amounts due from officers – P75,000; daim pending against freight company - P9,000; and refund on insurance policy - P4,500. According to the subsidiary ledger which have been thoroughly checked and rechecked, the trade accounts receivable totaled P600,000 (composed of current accounts – P375,000; two month accounts – P120,000; and accounts three months or more - P105,000). Responsible officials have acknowledged definite uncollectibility of three-month accounts with balance totaling P22,500. They have expressed doubt with respect to an additional P24,000 worth of accounts in the same category and they consider all other accounts collectible.

The unadjusted trial balance of Kate Fullo Company as at December 31, 2021 showed accounts receivable – trade with a balance of P693,000. Investigation revealed that it included amounts due from officers – P75,000; daim pending against freight company - P9,000; and refund on insurance policy - P4,500. According to the subsidiary ledger which have been thoroughly checked and rechecked, the trade accounts receivable totaled P600,000 (composed of current accounts – P375,000; two month accounts – P120,000; and accounts three months or more - P105,000). Responsible officials have acknowledged definite uncollectibility of three-month accounts with balance totaling P22,500. They have expressed doubt with respect to an additional P24,000 worth of accounts in the same category and they consider all other accounts collectible.

FINANCIAL ACCOUNTING
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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At what net realizable value should the accounts receivable – trade be carried as of December 31?

 

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The unadjusted trial balance of Kate Fullo Company as at December 31, 2021 showed accounts receivable – trade with a balance of P693,000. Investigation revealed that it included amounts due from officers – P75,000; claim pending against freight company – P9,000; and refund on insurance policy - P4,500. According to the subsidiary ledger which have been thoroughly checked and rechecked, the trade accounts receivable totaled P600,000 (composed of current accounts – P375,000; two month accounts – P120,000; and accounts three months or more – P105,000). Responsible officials have acknowledged definite uncollectibility of three-month accounts with balance totaling P22,500. They have expressed doubt with respect to an additional P24,000 worth of accounts in the same category and they consider all other accounts collectible. 26. At what net realizable value should the accounts receivable – trade be carried as of December 31?
Transcribed Image Text:The unadjusted trial balance of Kate Fullo Company as at December 31, 2021 showed accounts receivable – trade with a balance of P693,000. Investigation revealed that it included amounts due from officers – P75,000; claim pending against freight company – P9,000; and refund on insurance policy - P4,500. According to the subsidiary ledger which have been thoroughly checked and rechecked, the trade accounts receivable totaled P600,000 (composed of current accounts – P375,000; two month accounts – P120,000; and accounts three months or more – P105,000). Responsible officials have acknowledged definite uncollectibility of three-month accounts with balance totaling P22,500. They have expressed doubt with respect to an additional P24,000 worth of accounts in the same category and they consider all other accounts collectible. 26. At what net realizable value should the accounts receivable – trade be carried as of December 31?
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