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 300,000 Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise (30,000) 150,000 Customers' accounts reporting credit balances arising from advance payments Cash advance to subsidiary Claim from insurance entity (20,000) 400,000 15,000 300,000 Subscriptions receivable due in 60 days IOUs from employees Accrued interest receivable 45,000 10,000 2,000,000 T. Determine the amount to be presented as "Trade and Other Receivables" under current assets.

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 300,000 Customers' accounts reporting credit balances arising from sales return Advance payments for purchase of merchandise (30,000) 150,000 Customers' accounts reporting credit balances arising from advance payments Cash advance to subsidiary Claim from insurance entity (20,000) 400,000 15,000 300,000 Subscriptions receivable due in 60 days IOUs from employees Accrued interest receivable 45,000 10,000 2,000,000 T. Determine the amount to be presented as "Trade and Other Receivables" under current assets.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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