Reference no: EM132744520

As of December 31, the notes receivable account of Easy Corporation has a debit balance of Php 11,960. There was no balance at January 1. In analyzing this account, you discover that notes amounting to Php 42,250 were received from customers during the year under review; Php 20,800 of which were collected at maturity and Php 11,050 were discounted at the FWD Bank, the credit being to Notes Receivable. Of the Php 11,050 notes discounted, Php 5,200 were paid at maturity. One note for Php 1,560 (Red Company) was dishonored and was charged back to Notes Receivable.

Cash in the amount of Php 1,650 has been received as a partial payment on notes not yet due. These collections are shown as a liability on the balance sheet in an account entitled "Partial Payments on Notes Receivable". Easy Corporation has also pledged a Php 2,500 customer's note as collateral for the payment of the bank loan. The company is also treating as a cash item a three-month note for Php 400, given by an officer of the company, which is over a month past due.

Problem 1: If Easy Corporation will set up a Notes Receivable Discounted account, what will be the adjusted balance of Trade Notes Receivable account at December 31?