Mayon Company reported the following at December 31, 2021: Cash 4,500,000 Accounts receivable 7,500,000 Notes receivable (net of discounted note P500,000) Inventory Current assets 2,000,000 4,000,000 18,000,000 An analysis disclosed that accounts receivable comprises the following: Trade accounts receivable 5,000,000 (500,000) Allowance for doubtful accounts Selling price of Mayon Company's unsold goods sent to Baguio Company on consignment at 150% of cost and excluded from Mayon's ending inventory 3,000,000 Total Accounts receivable 7,500,000
Mayon Company reported the following at December 31, 2021: Cash 4,500,000 Accounts receivable 7,500,000 Notes receivable (net of discounted note P500,000) Inventory Current assets 2,000,000 4,000,000 18,000,000 An analysis disclosed that accounts receivable comprises the following: Trade accounts receivable 5,000,000 (500,000) Allowance for doubtful accounts Selling price of Mayon Company's unsold goods sent to Baguio Company on consignment at 150% of cost and excluded from Mayon's ending inventory 3,000,000 Total Accounts receivable 7,500,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 1CE
Related questions
Question
What amount should be reported as total current assets at December 31, 2021?
A. 17,000,000
B. 17,500,000
C. 15,000,000
D. 16,500,000
![Mayon Company reported the following at December 31, 2021:
Cash
4,500,000
Accounts receivable
7,500,000
Notes receivable (net of discounted note P500,000)
Inventory
2,000,000
4,000,000
Current assets
18,000,000
An analysis disclosed that accounts receivable comprises the following:
Trade accounts receivable
5,000,000
Allowance for doubtful accounts
(500,000)
Selling price of Mayon Company's unsold goods sent
to Baguio Company on consignment at 150% of cost
and excluded from Mayon's ending inventory
Total Accounts receivable
3,000,000
7,500,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0653dd33-0497-4d9d-932f-cfb1a044bd9f%2F12ae940e-0eaf-4da4-b2b0-edf4df3bb349%2Fpgzm98j_processed.png&w=3840&q=75)
Transcribed Image Text:Mayon Company reported the following at December 31, 2021:
Cash
4,500,000
Accounts receivable
7,500,000
Notes receivable (net of discounted note P500,000)
Inventory
2,000,000
4,000,000
Current assets
18,000,000
An analysis disclosed that accounts receivable comprises the following:
Trade accounts receivable
5,000,000
Allowance for doubtful accounts
(500,000)
Selling price of Mayon Company's unsold goods sent
to Baguio Company on consignment at 150% of cost
and excluded from Mayon's ending inventory
Total Accounts receivable
3,000,000
7,500,000
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