1.

In the December 31, 2020 statement of financial position of Echo Company, the
current receivables consisted of the following:
Trade accounts receivable                                                                       2,000,000
Allowance for doubtful accounts                                                            (  100,000)
Claim against shipper for goods lost
      in transit in November 2020                                                                 300,000
Selling price of unsold goods sent by                                                                        
            Echo on consignment at 150% of cost                                                          
               (not included in Echo’s ending inventory)                                    600,000
Security deposit on lease of warehouse                                                      200,000
Total                                                                                                              3,000,000
The December 31, 2020 statement of financial position should show current trade and
other receivables at P2,200,000