You were assigned to audit the Receivables of STUVWXYZ Corporation for the year ending December, 31, 2022. Following data are the transactions related to Receivables during 2022: (Balance of Trade Receivables January 1, 2022 is P250,000). Installment Receivable (customers provided post-dated checks; no entries were made on receipt of checks) P3,200,000 Interest Receivable on Bonds 68,200 Trade Accounts Receivable-Assigned 1,800,000 422,000 Subscription Receivable (due in 60 days) Collection from Trade Receivables 7,518,000 4,300,000 Advances to suppliers (to purchase raw materials) Advances to affiliated companies (to purchase computer equipment) 975,000 Sales by consignee on credit (per memo advice) Unpledged Trade Accounts Receivable 4,200,000 855,000 Purchased goods, FOB shipping point (goods arrived 12-23-2022) 4,590,000 Other Trade Receivables-Unassigned 6,545,000 750,000 Trade Receivables (estimated 85% collectible) Equipment sold on credit (in the warehouse for safekeeping per buyer's request) 1,928,000
You were assigned to audit the Receivables of STUVWXYZ Corporation for the year ending December, 31, 2022. Following data are the transactions related to Receivables during 2022: (Balance of Trade Receivables January 1, 2022 is P250,000). Installment Receivable (customers provided post-dated checks; no entries were made on receipt of checks) P3,200,000 Interest Receivable on Bonds 68,200 Trade Accounts Receivable-Assigned 1,800,000 422,000 Subscription Receivable (due in 60 days) Collection from Trade Receivables 7,518,000 4,300,000 Advances to suppliers (to purchase raw materials) Advances to affiliated companies (to purchase computer equipment) 975,000 Sales by consignee on credit (per memo advice) Unpledged Trade Accounts Receivable 4,200,000 855,000 Purchased goods, FOB shipping point (goods arrived 12-23-2022) 4,590,000 Other Trade Receivables-Unassigned 6,545,000 750,000 Trade Receivables (estimated 85% collectible) Equipment sold on credit (in the warehouse for safekeeping per buyer's request) 1,928,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer all the following and give the complete solutions on how you come up with that .
Transcribed Image Text:You were assigned to audit the Receivables of STUVWXYZ Corporation for the year ending December,
31, 2022. Following data are the transactions related to Receivables during 2022: (Balance of Trade
Receivables January 1, 2022 is P250,000).
Installment Receivable (customers provided post-dated
checks; no entries were made on receipt of checks)
P3,200,000
Interest Receivable on Bonds
68,200
Trade Accounts Receivable-Assigned
1,800,000
422,000
Subscription Receivable (due in 60 days)
Collection from Trade Receivables
7,518,000
4,300,000
Advances to suppliers (to purchase raw materials)
Advances to affiliated companies (to purchase
computer equipment)
975,000
Sales by consignee on credit (per memo advice)
Unpledged Trade Accounts Receivable
4,200,000
855,000
Purchased goods, FOB shipping point (goods arrived
12-23-2022)
4,590,000
Other Trade Receivables-Unassigned
6,545,000
750,000
Trade Receivables (estimated 85% collectible)
Equipment sold on credit (in the warehouse for
safekeeping per buyer's request)
1,928,000
Transcribed Image Text:Customer's account incurring credit balance due to
overpayment
320,000
Goods shipped to buyer, FOB destination (goods arrived
12-30-2022)
2,550,000
Consigned goods sold on credit (no remittance made to
consignor)
719,000
Trade Receivables (90% is known to be worthless)
200,000
37,000
Trade Receivables recovered (previously written off)
Cash Sales (with 15% discount)
7,320,000
Sales Returns and Allowances (on credit sales)
768,500
Goods shipped to buyer (FOB shipping point)
2,134,000
1,000,000
Subscription Receivable - Ordinary shares (due in 11 months)
Installment sales due 1-20 months
723,000
Required: Determine the amount of Trade Receivables of STUVWXYZ Corporation as of
December 31, 2022.
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