You were assigned to audit the "TRADE RECEIVABLES" account with a debit balance of P2,000,000 of Red Company for the fiscal year ending June 30, 2020. Subsidiary details revealed the following: Trade accounts receivable 730,000 Trade notes receivable 100,000 Installment receivable, normally due 1 to 2 years 300,000 Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise (30,000) 150,000 Customers' accounts reporting credit balances arising from advance payments Cash advance to subsidiary Claim from insurance entity (20,000) 400,000 15,000 300,000 Subscriptions receivable due in 60 days IOUs from employees Accrued interest receivable 45,000 10,000 2,000,000 T. Determine the amount to be presented as "Trade and Other Receivables" under current assets.

You were assigned to audit the "TRADE RECEIVABLES" account with a debit balance of P2,000,000 of Red Company for the fiscal year ending June 30, 2020. Subsidiary details revealed the following: Trade accounts receivable 730,000 Trade notes receivable 100,000 Installment receivable, normally due 1 to 2 years 300,000 Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise (30,000) 150,000 Customers' accounts reporting credit balances arising from advance payments Cash advance to subsidiary Claim from insurance entity (20,000) 400,000 15,000 300,000 Subscriptions receivable due in 60 days IOUs from employees Accrued interest receivable 45,000 10,000 2,000,000 T. Determine the amount to be presented as "Trade and Other Receivables" under current assets.

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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