011: Accounts receivable: P1,000,000.00 A test of collectability of the receivable showed that P580,000 is currently collectible and not impaired: P300,000 has been outstanding more than the required period for similar transaction and objective evidence showed that only P158,000 is considered realizable but with a current fair value of P141,000; the remaining receivable balance has been outstanding for 2 years and Point Company estimates that none of which will be realized. What amount should the account receivable is reported in the Dece
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
the balance of the
Accounts receivable: P1,000,000.00
A test of collectability of the receivable showed that P580,000 is currently collectible and not impaired: P300,000 has been outstanding more than the required period for similar transaction and objective evidence showed that only P158,000 is considered realizable but with a current fair value of P141,000; the remaining receivable balance has been outstanding for 2 years and Point Company estimates that none of which will be realized. What amount should the account receivable is reported in the December 31, 2011 statement of financial position?
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