Question
1. In auditing the SHOPEE Company, you obtained the bank statement, canceled checks, and other memoranda which relate to the company's bank account for December
1. In auditing the SHOPEE Company, you obtained the bank statement, canceled checks, and other memoranda which relate to the company's bank account for December 2018. In reconciling the bank balance with that shown on the company's books, you observed the facts set forth below:
- Balance per bank statement, December 31, 2018 - 47,174
- Balance per books, December 31, 2018 - 19,289
- Outstanding checks, December 31, 2018 - 63,000
- Receipts of December 31, 2018, deposited January 2, 2019 - 6,260
- Service charge for November, per bank memo of December 15, 2018 - 1,000
- Proceeds of bank loan, December 15, 2018, discounted for 3 months at 18% per annum omitted from company books - 47,750
- Deposit of December 22, 2018, omitted from bank statement - 9,170
- Check of Milano Company, returned on December 21, 2018, for absence of counter-signature and redeposited with complete signature on January 3, 2019, no entry on the books having been made for the return or redeposit. - 77,320
- Error on bank statement in entering deposit of December 18, 2018: Correct amount P1,600; entered in the statement P160 - 1,440
- Check No. 021261 of Small Company charged by bank in error to company's account - 13,600
- Proceeds of note of Arthur Co., collected by bank, December 10, 2018, not entered in cash book (principal amount of P25,000 plus interest of P1,125, less collection fee) - 25,625
- Erroneous debit memo of December 28, 2018, to charge company's account with settlement of bank loan which was paid by check no. 112171 on same date - 5,000
- Error on bank statement in entering deposit of December 4, 2018: Entered as P14,200.62; correct amount P12,400.62 - 1,800
- Deposit of Miles Co. of December 2, 2018, credited in error to this company - 3,500
What is the principal amount of the loan obtained from bank in December?
50,000
49,500
48,125
49,625 2. GIFTEE Company provided the following information: Accounts receivable, January 1, 2016 2,400,000 Allowance for doubtful accounts. January 1, 2016 120,000 Sales on account, December 31, 2016 16,000,000 Cash collections from customers, December 31, 2016 14,000,000 The cash collections included recovery of P20,000 from a customer whose account had been written off as worthless in 2015. During 2016, it was necessary to recognize doubtful accounts expense of P200,000 and write off worthless accounts of P60,000. On December 1, 2016, a customer settled an account by issuing a 12% six-month note for P800,000. What is the net realizable value of accounts receivable on December 31, 2016?
3,340,000
3,260,000
3,280,000
3,560,000
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