Transcribed Image Text: Preblem 4-2 (IAA) Credible Company provided the following T-account summarizing the transactions affecting the accounts receivable for the

Excerpt
50,000 Required: a. Compute the correct amount of accounts receivable. b. Prepare one compound entry to adjust the accounts receivable. c. Compute the amount to be presented as “trade and other receivables” under current assets. d. Indicate the classification and presentation of the other items.

Transcribed Image Text: Preblem 4-2 (IAA)
Credible Company provided the following T-account
summarizing the transactions affecting the accounts receivable
for the current year:
Accounts Receivable
600.000 Collections from customers 5,300,000
35,000
Jan. 1 balance
Charge sales
Shareholders’
6,000,000 Writeoff
Merchandise returns
40,000
subscriptions
Deposit on contract
Claims against common
carrier for damages
IOUS from employees
Cash advance to affiliates 100,000
Advahces to a supplier
200,000 Allowances to customer
for spping damages
Collections on carrier claims
100,000| Collection on subscriptions
25,000
120,000
40,000
50,000
10,000
50,000
Required:
a. Compute the correct amount of accounts receivable.
b. Prepare one compound entry to adjust the accounts receivable.
c. Compute the amount to be presented as “trade and other
receivables” under current assets.
d. Indicate the classification and presentation of the other items.

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