Question

Financial Statement Presentation | On December 31, San Guillermo's "Accounts receivable" balance per
ledger of P1,250,000 includes:
1. MasterCard or VISA credit card sale of merchandise to customer
P10,000
2. Overpayment to supplier for inventory purchased on account
20,000
3. Insurance claim on automobile accident
2,000
4. Advance to sales manager due in one year
4,000
5. 5-vear note receivable due from company president (this was issued by the president for the
loan granted to him.)
300,000
6. Interest due on 5-year note from company president, interest payable annually
6,000
7. Acceptance of 6-month note for past due-account arising from sale of inventory
5,000
8. Accrued interest receivable on the note above
100
9. Overpayment by customer of an account receivable
(5,000)
10. Accounts receivable to customers definitely uncollectible
4,000
11. Other trade accounts receivable-unassigned
50,000
12. Trade accounts receivable-assigned
10,000
13. Note receivable customer (this note is for a cash loan made to this customer collectible in 3
years.)
30,000
14. Claim for a tax refund from last year
3,000
15. Prepaid insurance-4 months remaining in the policy period
4,000
16. Advances to or receivables from stockholders (P100,000 is collectible currently)
250,000
17. Advances to affiliates
125,000
18. Subscription receivables
150,000
19. Special deposits on contract bids
30,000
20. Dividend receivables
10,000
21. Notes receivable dishonored
5,000
22. Accrued rent receivables
6,000
23. Claims against common carriers
4,900
24. Acceptance of 8-month note from employees arising from sale of inventory
6,000
25. Trade installment receivable due within 16 months, gross of unearned interest income of
P20,000
220,000
Total
P1,250,000
Based on the above data, answer the following questions:
1. Trade accounts receivable as of December 31
2. Trade notes receivable as of December 31.
3. Trade and other receivables to be presented in the current asset section of the balance sheet.
4. Non-current receivables as of December 31.
5. Non-trade receivables as of December 31.

Answer 1

1. MasterCard or VISA credit card sale of merchandise to customer P10,000 Trade accounts receivable
2. Overpayment to supplier for inventory purchased on account 20,000  Trade and other receivables
3. Insurance claim on automobile accident 2,000 Non-trade receivables
4. Advance to sales manager due in one year 4,000  Trade and other receivables
5. 5-vear note receivable due from company president (this was issued by the president for the
loan granted to him.) 300,000 Trade notes receivable
6. Interest due on 5-year note from company president, interest payable annually 6,000 Trade notes receivable
7. Acceptance of 6-month note for past due-account arising from sale of inventory 5,000 Trade notes receivable
8. Accrued interest receivable on the note above 100 Trade notes receivable
9. Overpayment by customer of an account receivable (5,000) Trade accounts receivable
10. Accounts receivable to customers definitely uncollectible 4,000- written off (bad debt)- Deduct from Trade accounts receivable
11. Other trade accounts receivable-unassigned 50,000 Trade accounts receivable
12. Trade accounts receivable-assigned 10,000 Trade accounts receivable
13. Note receivable customer (this note is for a cash loan made to this customer collectible in 3
years.) 30,000 Trade notes receivable
14. Claim for a tax refund from last year 3,000 Non-trade receivables

15. Prepaid insurance-4 months remaining in the policy period 4,000 Non-trade receivables
16. Advances to or receivables from stockholders (P100,000 is collectible currently) 250,000- Trade and other receivables (current) = 100000, Non-current receivables = 150000
17. Advances to affiliates 125,000 Non-trade receivables
18. Subscription receivables 150,000 Non-trade receivables
19. Special deposits on contract bids 30,000 Non-trade receivables
20. Dividend receivables 10,000 Non-trade receivables
21. Notes receivable dishonored 5,000- subtract from  Trade notes receivable and add to Trade accounts receivable
22. Accrued rent receivables 6,000 Non-trade receivables
23. Claims against common carriers 4,900 Non-trade receivables
24. Acceptance of 8-month note from employees arising from sale of inventory 6,000 Trade notes receivable
25. Trade installment receivable due within 16 months, gross of unearned interest income of
P20,000 Non-current receivables
220,000 Non-current receivables