At year-end, the current assets

of Hazel Company revealed

cash and cash equivalent of
P700,000, accounts
receivable of P1,200,000
and inventories of
P600,000. The
examination of accounts
receivable disclosed the
following:
Trade accounts 930,000
Allowance for doubtful
accounts (20,000)
Claim against shipper for goods
lost in transit 30,000
Selling price of unsold goods
sent by hazel
On consignment at 130% of
cost and not
Included in ending inventory
260,000
1,200,00
At year-end, the current assets of Hazel Company revealed cash and cash equivalent of
P700,000, accounts receivable of P1,200,000 and inventories of P600,000. The
examination of accounts receivable disclosed the following:

Trade accounts 930,000

Allowance for doubtful accounts (20,000)

Claim against shipper for goods lost in transit 30,000

Selling price of unsold goods sent by hazel

On consignment at 130% of cost and not

Included in ending inventory 260,000

1,200,00

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

Answer:

Cash and cash equivalent 700,000

Accounts receivable (1,200,000-260,000) 940,000

Inventories (600,000+200,000) 800,000

2,440,000