ABC Company’s record shows a December 31 balance of P2,350,000 for its accounts receivable. The following may be considered for adjustments, if necessary: 

• Client X has paid its accounts payable to ABC for the purchase of merchandise amounting to P120,000. Two days after the full payment was made, Client X returned some of the goods due to wrong delivery, which amounts to P35,000, which resulted in Client X’s subsidiary ledger having a negative 35,000 balance. ABC’s bookkeeper offset the amount from other accounts with a debit balance. 

• Goods at a selling price of P200,000 were shipped before the end of the year under the FOB Destination shipping term. Such amount was already recorded by ABC as sales for the period but at P220,000. On January 5, the customer informed ABC that they had just received the goods.

• A customer’s check amounting to P75,000 was received a day before year-end to be applied to its account. The check was dated January 7 and it was applied by ABC upon receipt of the check. • A credit sales amounting to P50,000 dated December 30 were recorded on the same day at P5,000. 

• A cash sale for January 1 amounting to P23,500 was recorded in December because the book was held open up to January 15. 

• A customer’s check was returned by the bank on January 2 marked NSF. Such a check was received from the customer on December 29 and was recorded. The amount indicated is P15,000. 

• A check amounting to P25,000, dated December 30 was received, recorded but undeposited.