Reference no: EM132429632
Question - The accounts receivable of Pasig Corporation were stated at P2,394,000 in a balance sheet submitted to a banker for credit. You are called upon to audit the report and, upon analysis, the asset was found to consist of the following items:
|
Due from customers on open account
|
P 2,250,000
|
|
Acknowledged claim for damages
|
45,000
|
|
Due from consignee at billed price - cost price (P45,000)
|
60,000
|
|
Investment in and advances to affiliated company
|
300,000
|
|
Loans to officers and employees
|
27,000
|
|
Deposits with municipalities - bids for contracts
|
135,000
|
|
Unpaid capital stock subscriptions
|
120,000
|
|
Advances to creditors for merchandise purchased but not received
|
48,000
|
|
Cash advanced to salesmen for traveling expenses
|
9,000
|
|
Allowance for doubtful accounts
|
(60,000)
|
|
|
P 2,934,000
|
The amount of P2,250,000 due from customers was the remaining balance after deducting accounts with credit balances of P12,000.
During your examination, you noted that on December 31, the company assigned P500,000 of customers' accounts to secure a 15%, P360,000 note payable. A 2% commission based on the accounts assigned was charged and deducted from the cash received. The client recorded this transaction by a debit to cash and a credit to notes payable.
Required -
How much is the Accounts Receivable (gross) balance at December 31?
Calculate the total non-trade receivable balance at December 31?
Calculate the total current non-trade receivable balance at December 31?
Calculate the liability for the accounts receivable - assigned?