11. The following to MARIE Company's accounts receivable at December 31, 2016: Estimated % Days outstanding 0 - 60 Amount 120,000 90,000 100,000 310,000 During 2016, MARIE Company wrote off P7,000 in receivables and recovered P4,000 that had been written off in prior years. AAA Company's December 31, 2015 allowance for uncollectible accounts was P22,000. Under the aging method, the amount of allowance for uncollectible accounts MARIE Company should report at December Uncollectible 1% 2% 6% 61 - 120 Over 120 P. 31, 2016 is
Bad Debts
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.
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