Question
On December 31, 2017, the Receivables account of ABC Company shows P1, 950, 000. Details of the subsidiary ledger show the following: Trade accounts receivable
- On December 31, 2017, the "Receivables" account of ABC Company shows P1, 950, 000. Details of the subsidiary ledger show the following:
Trade accounts receivable P775, 000
Trade notes receivable 100, 000
Trade installment receivable, normally due one to two years 300, 000
Customer's accounts reporting credit balances arising from sales returns 30, 000
Advance payments for purchase of merchandise 150, 000
Customers' accounts reporting credit balances arising from advance payments 20, 000
Cash advance to subsidiary 400, 000
Claims from insurance company 15,000
Subscription receivable due in 60 days 300, 000
Accrued interest receivable 10, 000
How much must be presented as "trade and other receivables" under current assets?
a. P1, 650,000
b. P1, 290,000
c. Answer not given
d. P1, 125,000
e. P725, 000
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