Requirements

Prepare one compound entry to reclassify the receivables account.

a. Accounts receivable 775,000
Notes Receivable 100,000
Installment Receivable 300,000
Advances to suppliers 150,000
Advances to subsidiaries 400,000
Claim receivable 15,000
Subscription receivable 300,000
Accrued interest receivable 10,000
Customer's credit balances 30,000
Advances from customers 20,000
Receivables 2,000,000

Compute the amount to be presented as "trade and other receivables" under current assets.
b. Accounts receivable 775,000
Notes Receivable 100,000
Installment Receivable 300,000
Advances to suppliers 150,000
Claim receivable 15,000
Subscription receivable 300,000
Accrued interest receivable 10,000
Allowance for Doubtful accounts (50,000)
Total Trade and Other Receivables 1,600,000

Indicate the classification and presentation of other items excluded from "trade and other receivables".
c. Advances to subsidiary --- Noncurrent asset --- Long-term investment

Customer's credit balances and Advances from customers --- current liabilities
--- Trade and other payables

Compute the correct amount of accounts receivable.

a.
 Journal entries:
1. FOB destination and freight collect
a. Accounts Receivable 500,000
Freight out 10,000
Sales
Allowance for freight charge

b. Cash 475,000
Sales discount
Allowance for freight charge
Accounts receivable

receivables".
500,000
10,000