2) On December 31, 2017, Sunmi Company has an outstanding accounts receivable balance of P130,000,000 broken down into: 0-60 days outstanding, P50,000,000; 61-120 days outstanding, P40,000,000; 121-365 days outstanding, P30,000,000; over one year outstanding, P10,000,000. Estimated uncollectible accounts are 2%, 5%, 10% and 25% respectively. During the current year, Sunmi wrote off P2,500,000 of accounts receivable and recovered P500,000 from accounts previously written off in prior years. On December 31, 2016, Sunmi had an allowance for doubtful accounts of P5,000,000. What amount should be reported as doubtful accounts expense for the year ended December 31, 2017? A. 5,500,000 B. 8,500,000 C. 4,500,000 D. 3,000,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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2) On December 31, 2017, Sunmi Company has an outstanding accounts receivable balance of P130,000,000
broken down into: 0-60 days outstanding, P50,000,000; 61-120 days outstanding, P40,000,000; 121-365
days outstanding, P30,000,000; over one year outstanding, P10,000,000. Estimated uncollectible accounts
are 2%, 5%, 10% and 25% respectively. During the current year, Sunmi wrote off P2,500,000 of accounts
receivable and recovered P500,000 from accounts previously written off in prior years. On December 31,
2016, Sunmi had an allowance for doubtful accounts of P5,000,000. What amount should be reported as
doubtful accounts expense for the year ended December 31, 2017?
A. 5.500.000
В.
8,500,000
С.
4,500,000
D.
3,000,000
Transcribed Image Text:2) On December 31, 2017, Sunmi Company has an outstanding accounts receivable balance of P130,000,000 broken down into: 0-60 days outstanding, P50,000,000; 61-120 days outstanding, P40,000,000; 121-365 days outstanding, P30,000,000; over one year outstanding, P10,000,000. Estimated uncollectible accounts are 2%, 5%, 10% and 25% respectively. During the current year, Sunmi wrote off P2,500,000 of accounts receivable and recovered P500,000 from accounts previously written off in prior years. On December 31, 2016, Sunmi had an allowance for doubtful accounts of P5,000,000. What amount should be reported as doubtful accounts expense for the year ended December 31, 2017? A. 5.500.000 В. 8,500,000 С. 4,500,000 D. 3,000,000
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