Prepare one compound entry to reclassify the receivables account.?
Dreamer company reported the "receivables" account with a debit balance of 2,000,000 at year-end.
The allowance for doubtful accounts had a credit balance of 50,000 on same date.
Subsidiary details revealed the following:
Trade accounts receivable 775,000
Trade notes receivable 100,000
Installments receivable, normally due 1 year to two years 300,000
Customers' accounts reporting credit balances arising from sales return (30,000)
Advance payments for purchase of merchandise 150,000
Customers' accounts reporting credit balances arising from advance payment (20,000)
Cash advance to subsidiary 400,000
Claims from insurance entity 15,000
Subscriptions receivable due in 60 days 300,000
Accrued interest receivable 10,000
Prepare one compound entry to reclassify the receivables account.
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