2-4 Trade and Non-trade Receivables You were assigned to audit the "TRADE RECEIVABLES" account with a debit balance of P2,000,000 of Red Company for the fiscal year ending June 30, 2020. Subsidiary details revealed the following: Trade accounts receivable 730,000 Trade notes receivable 100,000 Installment receivable, normally due 1 to 2 years Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise Customers' accounts reporting credit balances arising from advance payments Cash advance to subsidiary Claim from insurance entity Subscriptions receivable due in 60 days IOUS from employees 300,000 (30,000) 150,000 (20,000) 400,000 15,000 300,000 45,000 Accrued interest receivable 10,000 2,000,000 T. Determine the amount to be presented as "Trade and Other Receivables" under current assets.

2-4 Trade and Non-trade Receivables You were assigned to audit the "TRADE RECEIVABLES" account with a debit balance of P2,000,000 of Red Company for the fiscal year ending June 30, 2020. Subsidiary details revealed the following: Trade accounts receivable 730,000 Trade notes receivable 100,000 Installment receivable, normally due 1 to 2 years Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise Customers' accounts reporting credit balances arising from advance payments Cash advance to subsidiary Claim from insurance entity Subscriptions receivable due in 60 days IOUS from employees 300,000 (30,000) 150,000 (20,000) 400,000 15,000 300,000 45,000 Accrued interest receivable 10,000 2,000,000 T. Determine the amount to be presented as "Trade and Other Receivables" under current assets.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 8E: The revenue and cash receipts journals for Mirage Productions Inc. follow. The accounts receivable...

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Reversing Entries Thomas Company entered into two transactions involving promissory notes and properly recorded each transaction. 1. On November 1, it purchased land at a cost of 8,000. It made a 2,000 down payment and signed a note payable agreeing to pay the 6,000 balance in 6 months plus interest at an annual rate of 10%. 2. On December 1, it accepted a 4,200, 3-month, 12% (annual interest rate) note receivable from a customer for the sale of merchandise. On December 31, Thomas made the following related adjustments: Required: 1. Assuming that Thomas uses reversing entries, prepare journal entries to record: a. the January 1, reversing entries b. the March 1, 4,326 collection of the note receivable c. the May 1, 6,300 payment of the note payable 2. Assuming instead that Thomas does not use reversing entries, prepare journal entries to record the collection of the note receivable and the payment of the note payable.
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