Extracted text: Chapter 3: Audit of receivables Review Case Analysis. Answer the following cases. Show your computations. Case 1 On December 31, 2021, the accounts receivable control account of Banaue Rice Terraces Company had a balance of P4,465,000 which agreed with the total shown in its subsidiary ledger. As an auditor, you perform analytical procedures and inquiry with the audit client. The following is the summary of accounts included in the accounts receivable subsidiary ledger: Trade installment receivable due in 18 months, including unearned interest of P15,000 Receivables from the officers Claims against shipping company (15 months). Past due trade accounts receivables Customers NSF check returned by bank Advances to employees Customers' accounts reporting credit balances Receivable from customer arising from sale of goods Interest receivable on bonds P725,000 200,000 120,000 600,000 (80,000) 25,000 (40,000) 750,000 150,000 45,000 240,000 Interest receivable on notes Other trade accounts receivable- unassigned Subscriptions receivable for ordinary shares due in 24 months de 1,000,000 550,000 290,000 Trade accounts receivable - assigned Trade accounts on which post-dated check is held Deposit made by customer for warehouse rent for 2 years Trade accounts known to be worthless Total Accounts receivable (140,000) 30,000 P4,465,000 Other findings: a. The customers NSF check was returned by bank on December 29, 2021 due to insufficient fund, Banaue Rice Terraces informed the customer and re-deposit the check on January of the following year. the memo received by the client was dated January 2, 2022. The ledger of Banaue Rice Terraces showed a beginning balance for allowance for uncollectible accounts of P56,500. w.
Extracted text: d. The management policy and based on its historical experience, an estimate of 5% of the outstanding balance of trade receivable is C. The company quarterly provides allowance for uncollectible accounts Chapter 3: Audit of receiva bles totaling to P102,000 in the current period. d. The management policy and based on its historical experience estimate of 5% of the outstanding balance of trade receivab an uncollectible. Determine the following as a result of your audit: 1. How much is the correct amount of gross trade receivables as t December 31, 2021? 2. How much is the correct amount of "trade and other receivables reported in its December 31, 2021 statement of financial position? 3. How much is the balance of the allowance for bad debts as rf December 31, 2021? 4. How much is the amount of bad debts expense recognized in its statement of comprehensive income in 2021? 5. How much is the correct amount of non-current receivables reported in its Statement of financial position as of December 31, 2021?