Your audit disclosed that on December 31, 2021, the accounts receivable control account of Eileen Company had a balance of P 2,865,000. An analysis of the accounts receivable account showed the following: Accounts known to be worthless P 37,500 Advance payments to creditors on purchase orders 150,000 Advances to affiliated companies 375,000 Customer's accounts reporting credit balances arising from sales return (225,000) Interest receivable on bonds 150,000 Other trade accounts receivable -unassigned 750,000 Trade accounts receivable - assigned ( Eileen Company's equity in assigned accounts is P 150,000) 375,000 Subscription receivables due in 30 days 825,000 Trade installment receivable due 1-18 months including unearned finance charges of P 30,000 330,000 Trade receivables from officers due currently 22,500 Trade accounts on which post-dated checks are held (no entries were made on receipts of checks) 75,000
Your audit disclosed that on December 31, 2021, the accounts receivable control account of Eileen Company had a balance of P 2,865,000. An analysis of the accounts receivable account showed the following: Accounts known to be worthless P 37,500 Advance payments to creditors on purchase orders 150,000 Advances to affiliated companies 375,000 Customer's accounts reporting credit balances arising from sales return (225,000) Interest receivable on bonds 150,000 Other trade accounts receivable -unassigned 750,000 Trade accounts receivable - assigned ( Eileen Company's equity in assigned accounts is P 150,000) 375,000 Subscription receivables due in 30 days 825,000 Trade installment receivable due 1-18 months including unearned finance charges of P 30,000 330,000 Trade receivables from officers due currently 22,500 Trade accounts on which post-dated checks are held (no entries were made on receipts of checks) 75,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:20. The trade accounts receivable balance as at December 31, 2021 is
A. P 1,522,500
B. P 1,147,500
C. P 1,485,000
D. p 1,447,500
21. The net current trade and other receivables as at December 31, 2021 is
A. P 1,822,500
B. P 2,272,500
C. P 2,647,500
D. P 2,610,000
22. How much of the foregoing will be presented under noncurrent assets as at December 31, 2021?
Α. ΡΟ
B. P 375,000
C. P 525,000
D. P 1,200,000
Transcribed Image Text:Your audit disclosed that on December 31, 2021, the accounts receivable control account of Eileen Company had a
balance of P 2,865,000. An analysis of the accounts receivable account showed the following:
Accounts known to be worthless P 37,500
Advance payments to creditors on purchase orders 150,000
Advances to affiliated companies 375,000
Customer's accounts reporting credit balances arising
from sales return (225,000)
Interest receivable on bonds 150,000
Other trade accounts receivable -unassigned 750,000
Trade accounts receivable - assigned ( Eileen
Company's equity in assigned accounts is P 150,000) 375,000
Subscription receivables due in 30 days 825,000
Trade installment receivable due 1-18 months including
unearned finance charges of P 30,000 330,000
Trade receivables from officers due currently 22,500
Trade accounts on which post-dated checks are held (no
entries were made on receipts of checks) 75,000
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Step 1: Introduction of trade receivables
VIEWStep 2: Requirement 20 - Computation of trade accounts receivable as at December 31, 2021
VIEWStep 3: Requirement 21 - Computation of the net current trade and other receivables as at December 31, 2021
VIEWStep 4: Requirement 22 - Computation of the foregoing will be presented under noncurrent assets
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