The answer is already in the picture. I just need the solutions. In a NutshellProblem 19When examining the accounts of Ayala Corporation, it is ascertained that balance relatingto both receivables and payables are included in a single controlling account called"Receivables control" that has a debit balance of P4,850,000. An analysis of the make-upof this account revealed the following:DebitCreditAccounts receivable – customers7,800,000500,000300,000400,000800,000Accounts receivable – officersDebit balances – creditorsPostdated checks from customersSubscriptions receivableAccounts payable for merchandiseCredit balances in customer's accounts4,500,000200,000100,000150,000Cash received in advance from customersExpected bad debtsAfter further analysis of the aged accounts receivable, it is determined that the allowance fordoubtful accounts be P200,000. What is the correct total of current netreceivables?P8,800,000

Accounts receivables are those receivables which the company have as a result of the either the…

Answered: After further analysis of the aged…

After further analysis of the aged accounts receivable, it is determined that the allowance for doubtful accounts be P200,000. What is the correct total of current net receivables? P8,800,000

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 9RQSC: Assume that an organization asserts that it has $35 million in net accounts receivable. Describe...

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When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing: Items Debit Credit Accounts Receivable - customers P 40,000 Accounts receivable - officers (Current collection expected) 2,500 Debit balances - creditors 450 Expense advances to salespersons 1,000 Share capital subscriptions receivable 4,600 Accounts payable for merchandise P 19,250 Unpaid salaries 3,300 Credit balance in customer accounts 2,000 Cash received in advance from customers for goods not yet shipped 450 Expected bad debts, cumulative 500 Required:1. Give the journal entry to eliminate the above account and to set up the appropriateaccounts to replace it.
When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing: Items Debit Credit Accounts Receivable - customers P 40,000 Accounts receivable - officers (Current collection expected) 2,500 Debit balances - creditors 450 Expense advances to salespersons 1,000 Share capital subscriptions receivable 4,600 Accounts payable for merchandise P 19,250 Unpaid salaries 3,300 Credit balance in customer accounts 2,000 Cash received in advance from customers for goods not yet shipped 450 Expected bad debts, cumulative 500 Required:1. How should each item be reported on Palma Company’s statement of financial position?
The balance sheet of RS Corp. as at December 31, 1979 contained the following current assets: Cash P 96,578 Accounts receivable 452,800 Inventories 376,300 P925,678 An examination of the accounts disclosed that the accounts receivable consisted of the following items: Trade customers’ accounts P357,742 Due from employees – current 43,658 Equity in P50,000 of uncollected accounts receivable assigned under guaranty 16,000 Selling price of merchandise on consignment at 140% of cost and not sold by consignee 50,400 Allowance for doubtful accounts (15,000) P452,800 What should be the adjusted amount of the current assets as at December 31, 1979?
The balance sheet of ANDY Corp. as at December 31, 1979 contained the following current assets: Cash P 96,578 Accounts receivable 452,800 Inventories 376,300 P925,678 An examination of the accounts disclosed that the accounts receivable consisted of the following items: Trade customers’ accounts P357,742 Due from employees – current 43,658 Equity in P50,000 of uncollected accounts receivable assigned under guaranty 16,000 Selling price of merchandise on consignment at 140% of cost and not sold by consignee 50,400 Allowance for doubtful accounts (15,000) P452,800 What should be the adjusted amount of the current assets as at December 31, 1979?
Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions)20222021Accounts receivable (gross)$ 3,650$ 4,530Accounts receivable (net)3,4004,450Allowance for doubtful accounts25080Sales revenue32,97035,470Total current assets7,1427,304 Answer each of the following questions.(a)Calculate the accounts receivable turnover and the average collection period for 2022 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Accounts receivable turnoverenter the accounts receivable turnover in times rounded to 1 decimal place timesThe average collection period for 2022enter the average collection period for 2022 in days rounded to 1 decimal place days
ABC Corp showed the following data on its accounts receivables: Accounts known to be worthless. P37,500 Advances to affiliated companies, P200,000 Account balances of customers, P750,000 Customers' account reporting credit balances arising from sales returns, (P45,000) Trade receivables from officers due currently P22,500 How much is the amount of trade receivables? 705,000 750,000 772,500 972,500
Aljon Company reported the following as of December 31, 2021:Accounts receivables P100,000Notes receivables 80,000Allowance for doubtful accounts 27,000Installment receivables(normally receivable within 1 to 3 years) 150,000Customer’s credit balances 20,000Supplier’s debit balances 10,000Advances to subsidiaries 35,000Advances to suppliers 30,000Advances to affiliates 40,000Security deposit 85,000Subscriptions receivable 22,000How much is the total trade receivables as of December 31, 2021?
How effective is the organization in collecting its receivables? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S…
Classifying Items Related to Receivables and Payables in a Balance Sheet When examining the accounts of WholeFoods Company, we ascertain that balances relating to both receivables and payables are included in a single controlling account (called receivables), which has an $7,200 debit balance. An analysis of the details of this account reveals the following. Items Debit Credit Accounts receivable—customers $16,000 Accounts receivable—officers (current collection expected) 1,000 Travel advances to sales staff 400 Accounts payable for merchandise $7,700 Unpaid salaries 1,320 Credit balances in customer accounts (accounts receivable) 800 Cash received in advance from customers for goods not yet shipped 180 Allowance for doubtful accounts, adjusted 200 Indicate how each of the items should be reported on WholeFoods Company’s balance sheet. Some accounts below may have a zero balance. Do not use negative signs in your answers. Cash and…
The current assets and current liabilities sections of the balance sheet of Keane Co. appear as follows. Cash $18,000 Accounts payable $28,000 Accounts receivable $39,000 Notes payable 14,000 Less: Allowance for doubtful accounts 2,000 37,000 Unearned revenue 3,000 Inventory 62,000 Total current liabilities $45,000 Prepaid expenses 6,000 Total current assets $123,000 The following errors in the corporation’s accounting have been discovered: 1. Keane collected $4,400 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue. 2. The inventory amount reported included $3,200 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $1,800 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.…
The following facts apply to Walken Company during December 2021: a. Walken began December with an accounts receivable balance (net of bad debts) of €25,000.b. Walken had credit sales of €85,000.c. Walken had cash collections of €30,000.d. Walken factored €20,000 of net accounts receivable with Reliable Factor Company, transferring allrisks and rewards associated with the receivable, and otherwise meeting all criteria necessary toqualify for treating the transfer of receivables as a sale.e. Walken factored €15,000 of net accounts receivable with Dependable Factor Company, retainingall risks and rewards associated with the receivable, and otherwise meeting all criteria necessaryto qualify for treating the transfer of receivables as a sale.f. Walken did not recognize any additional bad debts expense, and had no write-offs of bad debtsduring the month.g. At December 31, 2021, Walken had a balance of €40,000 of cash at M&V Bank and an overdraft of(€5,000) at First National Bank. (That…
The balance sheet of RS Corp. as at December 31, 1979 contained the following current assets: Cash 96, 578 Accounts receivable 452,800 Inventories 376,300 925,678 An examination of the accounts disclosed that the accounts receivable consisted of the following items: Trade customers’ accounts 357,742 Due from employees – current 43,658 Equity in 50,000 of uncollected accounts receivable assigned under guaranty 16,000 Selling price of merchandise on consignment at 140% of cost and not sold 50,400 Allowance for doubtful accounts…