Reference no: EM132668631

Question - At year-end, Harem Company reported accounts receivable of P8,200,000 with the following analysis:

Accounts known to be worthless 100,000

Advance payments on purchase orders 400,000

Advances to subsidiary 1,000,000

Customers' accounts reporting credit balances arising from sales returns ( 600,000)

Trade accounts receivable 3,500,000

Subscription receivable due in 30 days 2,200,000

Trade installments receivable due 1 - 18 months, including unearned finance charge of P50,000 850,000

Trade accounts receivable from officers, due currently, 150,000

Trade accounts on which postdated checks are held and no entries were made on receipt of checks 200,000

Required - Show your complete solution. Label every item properly. Determine the correct amount of trade accounts receivable.