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Problem 8

The document provides details from the controlling receivables account of Tripoli Company, which has a debit balance of P23,050. It lists various debit and credit items in the account relating to both receivables and payables. The requirements are to: 1) Provide a journal entry to eliminate the controlling account and set up separate accounts for the items. 2) Classify how the items should be reported on Tripoli Company's balance sheet.

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Michael Arriesga
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1K views1 page

Problem 8

The document provides details from the controlling receivables account of Tripoli Company, which has a debit balance of P23,050. It lists various debit and credit items in the account relating to both receivables and payables. The requirements are to: 1) Provide a journal entry to eliminate the controlling account and set up separate accounts for the items. 2) Classify how the items should be reported on Tripoli Company's balance sheet.

Uploaded by

Michael Arriesga
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Problem 8 12: Classification of Receivables When examining the accounts of Tripoli Company, you ascertain that balances relating

g to both receivables and payables are included in a single controlling account (called receivables), which has a P23,050 debit balance. An analysis of the details of this account revealed the following:

Items Accounts receivable - customers Accounts receivable officers (current collection expected) Debit balances creditors Expense advances to salespersons Share capital subscription receivable Accounts payable for merchandise Unpaid salaries Credit balance in customer accounts Cash received in advance from customers for goods not yet shipped Expected bad debts, cumulative

Debit P 40,000 2,500 450 1,000 4,600

Credit

P19,250 3,300 2,000 450 500

Required: 1. Give the journal entry to eliminate the above account and to set up the appropriate accounts to replace it. 2. How should the items be reported on Tripoli Companys balance sheet?

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