Harem Company revealed a balance of P8,200,000 in the accounts receivable control at year-end. An analysis...

 

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Harem Company revealed a balance of P8,200,000 in the accounts receivable control at year-end. An analysis of the accounts receivable showed the following: Accounts known to be worthless 100,000 Advance payments to creditors on purchase orders 400,000 Advances to affiliated entities 1,000,000 Customers' accounts reporting credit balances arising from (600,000) sales return Interest receivable on bonds 400,000 Trade accounts receivable 3,500,000 Subscription receivable due in 30 days 2,200,000 Trade installments receivable due 1 - 18 months, including 850,000 unearned finance charge of P50,000 Trade accounts receivable from officers, due currently 150,000 Trade accounts on which postdated checks are held and no entries were made on receipt of checks 200,000 Total 8,200,000 10. What amount should be reported as trade accounts receivable at year-end? Harem Company revealed a balance of P8,200,000 in the accounts receivable control at year-end. An analysis of the accounts receivable showed the following: Accounts known to be worthless 100,000 Advance payments to creditors on purchase orders 400,000 Advances to affiliated entities 1,000,000 Customers' accounts reporting credit balances arising from (600,000) sales return Interest receivable on bonds 400,000 Trade accounts receivable 3,500,000 Subscription receivable due in 30 days 2,200,000 Trade installments receivable due 1 - 18 months, including 850,000 unearned finance charge of P50,000 Trade accounts receivable from officers, due currently 150,000 Trade accounts on which postdated checks are held and no entries were made on receipt of checks 200,000 Total 8,200,000 10. What amount should be reported as trade accounts receivable at year-end?

Answer rating: 100% (QA)

To determine the amount that should be reported as trade accounts receivable at yearend we need to subtract the specific items mentioned in the analys... View the full answer