The bookkeeper recorded a bank deposit at P450, but the bank recorded the deposit at its correct amount of P540. The bank reconciliation will require alan) O Deduction per book balance of cash O Deduction per bank statement balance O Addition per bank statement balance Addition per book balance of cash Question 35 The allowance method of recognizing bad debt expense is generally considered a generally accepted accounting principle. What two conditions must be met before the allowance method can be used? Bad debts must be relevant and reliable. Bad debts must be expected and material. Bad debts must be probable and measurable. Bad debts must be persistent over time and the method used to estimate them is consistently applied. Question 36 Receivables from officers, employees, or affiliated companies should be reported in the statement of financial position as Non-current assets only O Trade notes and accounts receivable if they otherwise qualify as current assets o Offsets to capital Current assets, if collectible within twelve months Question 37 Which form of receivable financing is equivalent to an absolute sale of accounts receivable? O Discounting of notes receivable O assignment of accounts receivable o Factoring Pledge of accounts receivable Question 38 Which of the following statement is correct? To be considered a negotiable instrument, a promissory note must specify an interest rate, The amount shown on a note is called the face value O A company that received a 6-month a promissory note would report its face value on the statement of financial position as a long-term receivable. O All the above statements are correct