. What is the balance of AR Corporation's Accounts Receivable as of Dec. 31, 2021? 2. What is the amount of the current accounts receivable of AR Corporation that might prove to be uncollectible? 3. What is the balance of the allowance for uncollectible accounts before adjustments of AR Corporation on December 31, 2021? 4. What is the balance of the allowance for uncollectible accounts after all the necessary adjusting entries on December 31, 2021 of AR Corporation?
. What is the balance of AR Corporation's Accounts Receivable as of Dec. 31, 2021? 2. What is the amount of the current accounts receivable of AR Corporation that might prove to be uncollectible? 3. What is the balance of the allowance for uncollectible accounts before adjustments of AR Corporation on December 31, 2021? 4. What is the balance of the allowance for uncollectible accounts after all the necessary adjusting entries on December 31, 2021 of AR Corporation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What is the balance of AR Corporation's
2. What is the amount of the current accounts receivable of AR Corporation that might prove to be uncollectible?
3. What is the balance of the allowance for uncollectible accounts before adjustments of AR Corporation on December 31, 2021?
4. What is the balance of the allowance for uncollectible accounts after all the necessary
Transcribed Image Text:The financial statements of AR Corporation included the following:
December 31, 2021
December 31, 2020
Accounts receivable
735,000
Allowance for uncollectible accounts
18,200
Sales on account
4,500,000
Cash collected from customers
4,250,000
Among the cash collections was the full recovery of a P16,000 receivable from John Doe, a
customer whose account had been written on as worthless late in 2020.
During 2021, it was necessary to write off uncollectible customers' accounts totaling P20,200.
On December 1, 2021, a customer settled his account by issuing to AR Corporation a 99, six-
month note for P150,000.
At December 31, 2021, the accounts receivable included P100,800 past due accounts. After
careful study of all past-due accounts, the management estimated that the probable loss
contained therein was 10%. In addition, 2% of the current accounts receivable might prove
uncollectible.
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