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    IA Valix 2020 (Problem 4-2 Answer Key)

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    Baby Mushroom
    Accounts receivable on January 1 was $600,000. After charges, collections, returns, write-offs and allowances, accounts receivable was $1,200,000. Subscription receivables were $150,000, with a deposit on contract of $120,000 and claims against carriers of $60,000, leaving receivables of $490,000. Total trade and other receivables was $1,320,000. The document provides guidance that deposit on contract should be classified as non-current, cash advances to affiliates as long-term investments, and subscription receivables deducted from share capital.

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    IA Valix 2020 (Problem 4-2 Answer Key)

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    Baby Mushroom
    3K views6 pages
    Accounts receivable on January 1 was $600,000. After charges, collections, returns, write-offs and allowances, accounts receivable was $1,200,000. Subscription receivables were $150,000, with a deposit on contract of $120,000 and claims against carriers of $60,000, leaving receivables of $490,000. Total trade and other receivables was $1,320,000. The document provides guidance that deposit on contract should be classified as non-current, cash advances to affiliates as long-term investments, and subscription receivables deducted from share capital.

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    Intermediate Accounting Valix2020 Chapter 4 answer key

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    Accounts receivable on January 1 was $600,000. After charges, collections, returns, write-offs and allowances, accounts receivable was $1,200,000. Subscription receivables were $150,000, with a deposit on contract of $120,000 and claims against carriers of $60,000, leaving receivables of $490,000. Total trade and other receivables was $1,320,000. The document provides guidance that deposit on contract should be classified as non-current, cash advances to affiliates as long-term investments, and subscription receivables deducted from share capital.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    3K views6 pages

    IA Valix 2020 (Problem 4-2 Answer Key)

    Uploaded by

    Baby Mushroom
    Accounts receivable on January 1 was $600,000. After charges, collections, returns, write-offs and allowances, accounts receivable was $1,200,000. Subscription receivables were $150,000, with a deposit on contract of $120,000 and claims against carriers of $60,000, leaving receivables of $490,000. Total trade and other receivables was $1,320,000. The document provides guidance that deposit on contract should be classified as non-current, cash advances to affiliates as long-term investments, and subscription receivables deducted from share capital.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 6

    Problem 4-2

    a. Accounts receivable- Jan. 1 600,000


    charges sales 6,000,000
    Less: Collection from customers 5,300,000
    Merchandisereturn 40,000
    Write off 35,000
    Allowances to customer 25,000 (5,400,000)
    Accounts receivables 1,200,000

    b. Subscribtion receivables 150,000 200K-50K


    Deposit in contract 120,000
    Claims against common carrier for damages 60,000 100K-40k
    IOUs from employees 10,000
    cash advance to affiliates 100,000
    Advances to a supplier 50,000
    Accounts receivables 490,000

    c. Accounts receivable 1,200,000


    Claims against common carrier for damages 60,000
    Advances to a supplier 50,000
    IOUs from customers 10,000
    Total rade and other Receivables 1,320,000

    d. Depositon contract should classfied as non-current and presented as other non-current asset.
    Cash advance to affilites should be presented as long-term investment and classified as
    noncurrent.
    Subscribtion receivables should be deducted from subscribed share capital.

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