Reference no: EM132668622
Question - Dreamer Company reported the "Receivables" account with a debit balance of P2,000,000 at year-end.
The allowance for doubtful accounts had a credit balance of P50,000 on same date.
Subsidiary details revealed the following:
Trade accounts receivable 775,000
Trade notes receivable 100,000
Installments receivable, normally due 1 year to two years 300,000
Customers' accounts reporting credit balances arising from sales return (30,000)
Advance payments for purchase of merchandise 150,000
Customers' accounts reporting credit balances arising from advance payments (20,000)
Cash advance to subsidiary 400,000
Claim from insurance entity 15,000
Subscriptions receivable due in 60 days 300,000
Accrued interest receivable 10,000
Required - Show your complete solution. Label every item properly.
a. Compute the amount to be presented as "trade and other receivables" under current assets.
b. Indicate the classification and presentation of the other items excluded from "trade and other receivables".