2. On January 1, 2017, the balance of accounts receivable of Kate Company was P5,000,000 and the allowance for doubtful accounts on the same date was P800,000. The following data were gathered: Credit Sales Writeoffs Recoveries 2014 10,000,000 250,000 20,000 2015 14,000,000 400,000 30,000 2016 16,000,000 650,000 50,000 2017 25,000,000 1,100,000 150,000 Doubtful accounts are provided for as percentage of credit sales. The accountant calculates the percentage annually by using the experience of the three years prior to the current year. How much should be reported as doubtful accounts expense for 2017? a. 600,000 b. 450,000 c. 950,000 d. 750,000

2. On January 1, 2017, the balance of accounts receivable of Kate Company was P5,000,000 and the allowance for doubtful accounts on the same date was P800,000. The following data were gathered: Credit Sales Writeoffs Recoveries 2014 10,000,000 250,000 20,000 2015 14,000,000 400,000 30,000 2016 16,000,000 650,000 50,000 2017 25,000,000 1,100,000 150,000 Doubtful accounts are provided for as percentage of credit sales. The accountant calculates the percentage annually by using the experience of the three years prior to the current year. How much should be reported as doubtful accounts expense for 2017? a. 600,000 b. 450,000 c. 950,000 d. 750,000

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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