A. Classification of receivables

When examining the accounts of Tripoli Company, you ascertain that balances

relating to both receivables and payables are included in a single controlling account

(called receivables), which has a P23,050 debit balance. An analysis of the details of this

account revealed the following:

Items

Debit Credit

Accounts receivable - customers P40,000

Accounts receivable - officers (current

collection expected) 2,500

Debit balances - creditors

10-16. Classification of Receivables The following T-account summarizes the transactions affecting the accounts receivable of Charry Company for 2015. Accounts Receivable January 1 balance after Collections from deducting credit balance customers, including of P3,000 P 53,000 overpayment of P5,000 P620,000 Charge sales 625,000 Write offs 3,500 Charge for goods out on Merchandise returns 2,500 consignment 5,000 Allowance to customers Shareholders subscriptions 30,000 for shipping damages 1,500 Accounts written off but Collections on carrier recovered 1,000 claims 1,000 Cash paid to customer for Collection on Jan. 1 credit balance 2,500 subscription 15,000 Deposit on contract 15,000 Claim against common carrier for shipping damages 1,500 IOUs from employees 50.0 Cash advance to affiliate 10,000 Advance to supplier 5,000REQUIRED: a. Prepare adjusting entries to correct accounts receivable. b. Prepare a partial statement of financial position to show the foregoing information