Reference no: EM133185203
Question - A Sales cut-off procedure for the audit of the financial statements of Carrie Corp. resulted to the following information:
SALES CUT-OFF
DECEMBER ENTRIES
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Delivery Receipt No.
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Delivery Date
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Invoice Price
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Remarks
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125034
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Dec. 26
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9,600
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FOB Destination
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125035
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Dec. 26
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10,200
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FOB Shipping Point
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125036
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Dec. 27
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8,400
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FOB Destination (In-Transit)
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125037
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Dec. 28
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22,000
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Shipped to Consignee
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125039
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Dec. 29
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6,500
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FOB Shipping Point (In-Transit)
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125040
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Dec, 30
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8,800
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FOB Shipping Point
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120541
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Dec. 30
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7,200
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Free Alongside the Vessel
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JANUARY ENTRIES
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Delivery Receipt No.
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Delivery Date
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Invoice Price
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Remarks
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125042
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Dec. 31
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11,600
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FOB Destination (In-transit)
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125043
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Dec. 31
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8,200
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FOB Shipping Point (In-transit)
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125044
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Jan. 2
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6,600
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FOB Shipping Point
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125045
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Jan. 2
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10,000
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Bill and Hold Agreement
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Audit Notes:
1. Inventories were physically counted on December 29, 2021 and amounted to P212,000.
2. Gross profit based on Sales is at 40%. Total unadjusted sales and accounts receivables per records were at P4,310,000 and P321,000, respectively.
3. No 125037 were for goods sent to a consignee in Bulacan. Freight costs on these goods paid by the consignee was at P3,000. Per inquiry with the consignee, 30% of these goods were still on hand as of December 31. Agreed commission rate is at 10%.
4. DR No. 125038 were for goods delivered to a customer in Manila in December 29. Related billing is yet to be made since the delivery receipt is yet to be transmitted by the delivery department to the Billing department. The agreed upon sales price as per the approved sales order however is at P12,000. The goods are still in transit as of December 31 and as per the sales invoice the agreed FOB term is FOB Manila.
5. DR No. 125045 were for goods sold on a Bill and Hold Agreement executed in December.
Required - What is the adjusted balance of Accounts Receivables as of December 31?
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