Customers' accounts reporting credit balances arising from sales return Your audit disclosed that on December 31, 2006, the accounts receivable control account of Alilem Company had a balance of P2,865,000. An analysis of the accounts receivable account showed the following: Accounts known to be worthless Advance payments to creditors on purchase orders Advances to affiliated companies Interest receivable on bonds P 37,500 150,000 375,000 (225,000) 150,000 Other trade accounts receivable- unassigned 750,000 Subscriptions receivable for common stock due in 30 days 825,000 Trade accounts receivable assigned (Finance company's equity in assigned accounts is P150,000) 375,000 Trade installment receivable due 1 - 18 months, including unearned finance charges of P30,000 Trade receivables from officers due currently 330,000 22,500 Trade accounts on which post-dated checks are held (no entries were made on receipts of checks) 75,000 P2.865.000