Problem 8 12: Classification of Receivables When examining the accounts of Tripoli Company, you ascertain that balances relating

g to both receivables and payables are included in a single controlling account (called receivables), which has a P23,050 debit balance. An analysis of the details of this account revealed the following:

Items Accounts receivable - customers Accounts receivable officers (current collection expected) Debit balances creditors Expense advances to salespersons Share capital subscription receivable Accounts payable for merchandise Unpaid salaries Credit balance in customer accounts Cash received in advance from customers for goods not yet shipped Expected bad debts, cumulative

Debit P 40,000 2,500 450 1,000 4,600

Credit

P19,250 3,300 2,000 450 500

Required: 1. Give the journal entry to eliminate the above account and to set up the appropriate accounts to replace it. 2. How should the items be reported on Tripoli Companys balance sheet?