On 31 December 2017, IC showed the following current assets Cash 3,200,000 Accounts receivable 2,500,000 Inventory 2,000,000 Prepaid expenses 100,000 Total Current Assets 7,800,000 Cash on hand, including postdated check of P50,000 and employees IOUs P50,000 500,000 Cash in bank per bank statement (Outstanding Checks on 31 December 2017, P200,000) 2,700,000 Total Cash 3,200,000 Customers’ debit balances, net of customer deposit of P50,000 1,900,000 Allowance for doubtful accounts (150,000) Sales price of goods invoiced to customers at 150% of cost on 29 December 2017 but delivered on 5 January 2018 and excluded from reported inventory 750,000 Total accounts receivable 2,500,000 What is the adjusted balance of receivables?
On 31 December 2017, IC showed the following current assets Cash 3,200,000 Accounts receivable 2,500,000 Inventory 2,000,000 Prepaid expenses 100,000 Total Current Assets 7,800,000 Cash on hand, including postdated check of P50,000 and employees IOUs P50,000 500,000 Cash in bank per bank statement (Outstanding Checks on 31 December 2017, P200,000) 2,700,000 Total Cash 3,200,000 Customers’ debit balances, net of customer deposit of P50,000 1,900,000 Allowance for doubtful accounts (150,000) Sales price of goods invoiced to customers at 150% of cost on 29 December 2017 but delivered on 5 January 2018 and excluded from reported inventory 750,000 Total accounts receivable 2,500,000 What is the adjusted balance of receivables?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
Related questions
Question
On 31 December 2017, IC showed the following current assets
|
Cash |
3,200,000 |
|
Accounts receivable |
2,500,000 |
|
Inventory |
2,000,000 |
|
Prepaid expenses |
100,000 |
|
Total Current Assets |
7,800,000 |
|
Cash on hand, including postdated check of P50,000 and employees IOUs P50,000 |
500,000 |
|
Cash in bank per bank statement (Outstanding Checks on 31 December 2017, P200,000) |
2,700,000 |
|
Total Cash |
3,200,000 |
|
Customers’ debit balances, net of customer deposit of P50,000 |
1,900,000 |
|
Allowance for doubtful accounts |
(150,000) |
|
Sales price of goods invoiced to customers at 150% of cost on 29 December 2017 but delivered on 5 January 2018 and excluded from reported inventory |
750,000 |
|
Total accounts receivable |
2,500,000 |
What is the adjusted balance of receivables?
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