1. Hayden Co.

provided some information on their financial records on December 31, 2021:

Accounts Receivable, January 1 P 1,920,000

Collections of account receivable 6,240,000
Bad Debts 200,000
Inventory, January 1 2,880,000
Inventory, December 31 2,640,000
Accounts payable, January 1 1,000,000
Accounts payable, December 31 1,500,000
Cash sales 1,200,000
Purchases 4,800,000
Gross profit on Sales 2,160,000

What is the ending balance of accounts receivable on December 31, 2021?

a. 1,680,000 b. 2,880,000 c. 3,120,000 d. 4,080,000

2. Yellow Company has an 8% note receivable dated June 30, 2020, in the original amount of
P600,000. Payments of P200,000 in principal plus accrued interest are due annually on July 1,
2021, 2022, and 2023.

In its June 30, 2022 statement of financial position, what amount should Yellow Company report
as a current asset for interest on the note receivable?

a. None b. 16,000 c. 32,000 d. 48,000

3. On December 31, 2021, the “Receivables” account of Mon Company shows an amortized cost of
P1,950,000. Subsidiary details show the following:

Trade accounts receivable, P775,000; Trade notes receivable, P100,000; installment receivable,
normally due one 9year) to two (2) years, P300,000; Customers’ accounts reporting credit
balances arising from sales returns, P30,000; Advance payments for purchase of merchandise,
P150,000; Customers’ accounts reporting credit balances arising from advance payments,
P20,000; Cash advances to subsidiary, P400,000; Claims from insurance company, P15,000;
Subscription receivable due in 60 days, P300,000; Accrued interest receivable, P10,000.

How much should be presented as “trade and other receivables” under current assets?

a. 725,000 b. 1,125,000 c. 1,290,000 d. 1,650,00