PROBLEM 2

You are revisiting the audit working paper presented to you by your audit staff in line with his audit procedures done in auditing T-ara Corporations accounts receivable. The following were lifted from the said working papers:

Audit notes:

T-ara Corporations accounts receivable subsidiary ledger had the following details:

Customers	Invoice Date	Invoice Amount	Balance
Park Ji-yeon Inc.	12/06/22	127,000
	10/29/22	84,000	211,000
Hyomin Company	12/30/22	42,000
	09/27/22	30,000
	08/20/22	53,520	125,520
Hahn Eunjung Inc.	12/30/22	40,000
	12/08/22	80,000
	11/25/22	63,600	183,600
Park So-yeon Company	11/17/22	138,840
	10/09/22	132,000
	08/20/22	74,400	345,240
Jeon Boram Corporation	12/10/22	250,000	250,000
Qri Incorporated	09/12/22	104,400	104,400
Total			1,219,760

The accounts receivables balances were confirmed with the customers. You noted the following exceptions:

Customers	Balance per reply	Remarks
Park Ji-yeon Inc.	197,000	The invoice dated 10/29/22 was erroneously priced at P84 per unit. The agreed price per the customers approved purchase order was at P70.
Hyomin Company	83,520	Invoice dated 12/30/22 was for a sale made on the same date. A significant clause in the sale agreement with Hyomin Company is to install the merchandise sold which the company yet to accomplish as of December 31.
Hahn Eunjung Inc.	143,600	The difference was due to the invoice dated 12/30/22. Goods have not been received by Hahn Eunjung yet as of December 31, 2022. Term of sale is FOB shipping point.
Park So-yeon Company	326,400	Credit memo for customer return for damanged goods worth P18,840 related to the invoice dated 11/17/22 was recorded in January of the following year.
Jeon Boram Corporation	200,000	Invoice dated 12/10/22 was the sales price of 2,500 units of merchandise delivered to Jeon Boram on the same date on consignment basis. As of December 31, per Jeon Borams reply, 500 units still remained on hand. The consignment agreement provides Jeon Boram a commission of 20% based on sales.
Qri Incorporated	No Reply	Qri is under liquidation and the amount receivable from the company is deemed definitely uncollectible.

• The balance of allowance for doubtful accounts at the beginning of the year was at P52,500. During the year, the company wrote-off P44,200 receivables and recorded P24,800 from the previously written-off accounts. The company policy with regard uncollectible accounts are summarized below:

Age	% of collectability
0 30 days	99%
31 60 days	98%
61 90 days	95%
91 -120 days	90%
Over 120 days	50%

Questions: Based on above and result of your audit, answer the following:

What is the correct balance of the accounts receivable from Jeon Boram?

Group of answer choices

200,000

160,000

120,000

100,000

What is the correct balance of the accounts receivable gross of any allowances as of December 31?

Group of answer choices

1,004,520

900,520

950,520

870,520

What is the correct allowance for bad debts as of December 31, 2022?

Group of answer choices

86,210

86,310

85,910

84,802

What is the correct bad debt expense?

Group of answer choices

157,210

156,102

157,610

156,410

Please show solutions po.