Chapter 1 Problem 5-4
a. Accounts receivable 775,000
Notes receivable 100,000
Installments receivable 300,000
Advances to suppliers 150,000
Advances to subsidiary 400,000
Claim receivable 15,000
Subscriptions receivable 300,000
Accrued interest receivable 10,000
Customer’s credit balances 30,000
Advances from customers 20,000 Receivables 2,000,000
b. Accounts receivable 775,000
Allowance for doubtful accounts ( 50,000)
Notes receivable 100,000
Installments receivable 300,000
Advances to suppliers 150,000
Claim receivable 15,000
Subscription receivable 300,000
Accrued interest receivable 10,000
Total trade and other receivables 1,600,000
c. The advances to subsidiary should be classified as noncurrent and presented as
long-term investment.
The customers’ credit balances and advances from customers should be classified as current liabilities and included as part of “trade and other payables”.
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