When remaining the accounts of Brute Company, it is ascertained that balances relating to both receivables and payables are included in a single controlling account called "receivables control" that has a debit balance of 4,850,000.
An analysis of the make-up of this account revealed the following:
|
Debit |
Credit |
| Account Receivables-customers |
7,800,000 |
|
| Accounts Receivables-officers,current |
500,000 |
|
| Debit balances-creditors |
300,000 |
|
| Postdated checks from customers |
400,000 |
|
| Subscriptions receivable |
800,000 |
|
| Accounts payable for merchandise |
|
4,500,00 |
| Credit balances in customers' accounts |
|
200,000 |
| Cash received in advance from customers for goods not yet shipped |
|
|
|
100,000 |
| Expected bad debts |
|
150,000 |
After further analysis of the aged accounts receivables, it is determined that the allowance for doubtful accounts should be 200,000.
Required: Compute the amount that should be reported as "trade and other receivables" under current assets.