auditing (Accounts receivable /Notes receivable)

Financial Statement Presentation | On December 31, San Guillermo's "Accounts receivable" balance per ledger of P1,250,000 includes: 1. MasterCard or VISA credit card sale of merchandise to customer P10,000 2. Overpayment to supplier for inventory purchased on account 20,000 3. Insurance claim on automobile accident 2,000 4. Advance to sales manager due in one year 4,000 5. 5-vear note receivable due from company president (this was issued by the president for the loan granted to him.) 300,000 6. Interest due on 5-year note from company president, interest payable annually 6,000 7. Acceptance of 6-month note for past due-account arising from sale of inventory 5,000 8. Accrued interest receivable on the note above 100 9. Overpayment by customer of an account receivable (5,000) 10. Accounts receivable to customers definitely uncollectible 4,000 11. Other trade accounts receivable-unassigned 50,000 12. Trade accounts receivable-assigned 10,000 13. Note receivable customer (this note is for a cash loan made to this customer collectible in 3 years.) 30,000 14. Claim for a tax refund from last year 3,000 15. Prepaid insurance-4 months remaining in the policy period 4,000 16. Advances to or receivables from stockholders (P100,000 is collectible currently) 250,000 17. Advances to affiliates 125,000 18. Subscription receivables 150,000 19. Special deposits on contract bids 30,000 20. Dividend receivables 10,000 21. Notes receivable dishonored 5,000 22. Accrued rent receivables 6,000 23. Claims against common carriers 4,900 24. Acceptance of 8-month note from employees arising from sale of inventory 6,000 25. Trade installment receivable due within 16 months, gross of unearned interest income of P20,000 220,000 Total P1,250,000 Based on the above data, answer the following questions: 1. Trade accounts receivable as of December 31 2. Trade notes receivable as of December 31. 3. Trade and other receivables to be presented in the current asset section of the balance sheet. 4. Non-current receivables as of December 31. 5. Non-trade receivables as of December 31. 31, 2017 Comprehensive Problem 1 | Vincent Ocon Company properly reported the following balances on December Accounts receivable P1,500,000 Allowance for doubtful accounts 90,000 Accrued interest receivable - loan 320,000 Loan receivable 4,000,000 1 |Page a. During 2018, Vincent Ocon recorded credit sales of P9,000,000 provision for doubtful accounts at 2% of credit sales. Accounts of P100,000 were written off during the year but accounts of P20,000 were subsequently recovered. The balance of accounts receivable on December 31, 2018 amounted to P2,000,000 and aged as follows: Classification Balance Estimated Uncollectible 1-60 days P 1,000,000 1% 61-120 days 400,000 5% 121-180 days 300,000 10% 181-360 days 200,000 25% More than one year 100,000 P40,000 is definitely uncollectible the balance is 80% uncollectible b. The balance of the loan receivable represents the remaining amount loaned to LJIV Company on January 1, 2016. The total amount loaned in 2016 was P5,000,000 The terms of the loan require principal payments of P1,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment was due on January 1, 2017. LJJV Company made the required payments during 2017 and 2018. However, during 2018 LJIV Company began to experience financial difficulties, requiring Vincent Ocon to reassess the collectability of the loan. On December 31, 2018, Vincent Ocon determines that the remaining principal payment will be collected but the collection of the interest is unlikely. Based on the above and the result of your audit, determine the following (Round off present value factors to two decimal places): 1. Allowance for doubtful accounts of accounts receivable, 12/31/2018 2. The net realizable value of Accounts receivable, 12/31/2018. 3. The over(under)statement of the recorded doubtful accounts expense. . The loan impairment 5. The interest income for 2019