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

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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