Problem 4-1 (IAA)
The "Receivables" account with Dreamer Company reported a debit balance of P2,000,000 at year-end. The allowance for doubtful accounts had a credit balance of P50,000 on the same date.
Subsidiary details revealed the following:
Trade accounts receivable P775,000
Trade notes receivable P100,000
Installments receivable, normally due 1 year to 2 years P300,000
Customers' accounts reporting credit balances arising from sales return P30,000
Advance payments for the purchase of merchandise P150,000
Customers' accounts reporting credit balances arising from advance payments P20,000
Cash advance to subsidiary P400,000
Claim from insurance entity P15,000
Subscriptions receivable due in 60 days P300,000
Accrued interest receivable P10,000
Total: P2,000,000