Problem 1-8 (PHILCPA Adapted)

Caticlan Company provided the following data on December 31, 2016:

Cash, including sinking fund of P500,000 2,000,000

Notes receivable 1,200,000
Notes receivable discounted 700,000
Accounts receivable – unassigned 3,000,000
Accounts receivable – assigned 800,000
Allowance for doubtful accounts 100,000
Equity of assignee in accounts receivable assigned 500,000
Inventory, including P600,000 cost of goods in transit
purchased FOB destination. The goods were
received on January 3, 2017 2,800,000

What total amount of current assets should be reported on December 31, 2016?

Problem 1-9 (AICPA Adapted)

East Company reported the following current assets ar year-end:

Cash 3,200,000
Accounts receivable 3,000,000
Inventory 2,800,000
Prepaid insurance 200,000

Total current assets 9,200,000

The accounts receivable consisted of the following:

Customers’ accounts 1,420,000

Employees’ account-current 240,000
Advances to subsidiary 260,000
Allowance for uncollectible accounts (120,000)
Subscription receivable, not collectible currently 1,200,000

Total accounts receivable 3,000,000

What total amount should be reported as current assets at year-end?