Reference no: EM132635579
Question - Answer the problem below and show the solution
Q1. 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 P500,000 on the same date.
Subsidiary details reveal the following:
Trade accounts receivable 775,000
Trade notes receivable 100,000
Installments receivable, normally due 1 year to two years 300,000
Customers' account reporting credit balance 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 - Compute the amount presented as "trade and other receivables" under current assets.
Q2. Valiant Company reported the following analysis of current receivables at year-end:
Trade accounts receivable 2,000,000
Allowance for doubtful accounts (100,000)
Claim against shipper for goods lost in transit in November 300,000
Selling price of unsold goods sent by Valiant on consignment at 150% of cost and not included in ending inventory 600,000
Security deposit on lease of warehouse 200,000
Total 3,000,000
Required - What total amount should be reported as current trade and other receivables?
A. 2,200,000
B. 2,400,000
C. 2,300,000
D. 3,000,000
Q3. Jinx Corporation provided the following information for the current year in relation to accounts receivable:
Accounts receivable, January 1 1,300,000
Credit sales 5,500,000
Sales return 150,000
Accounts written off 100,000
Collections from customers 5,000,000
Estimated future sales return on December 31 50,000
Estimated uncollectible accounts per aging at year end 250,000
Required - What amount should be reported as net realizable value of accounts receivable on December 31?
A. 1,550,000
B. 1,250,000
C. 1,300,000
D. 1,500,000