3) On January 1, 2020 Elisha Company reported Accounts Receivable of P1,300,000, net of allowance for bad debts of P126,000. During the year, Sales (all on credit) amounted to P4,400,000. Collections from customers including recoveries of P24,000 totaled P4,550,000 net of discounts amounting to P147,000. Likewise, P9,000 of receivables were written-off. Elisha Company uses the aging method in determining bad debts, although Elisha Company provides interim bad debts provision equal to 0.5% of net credit sales. The following table shows the corresponding bad debt percentage of Elisha Company's accounts Percentage of AR balance receivable: Age Uncollectability 45 days or less 46 – 90 days over 90 days 5% 10% 45% 30% 25% 15% The required allowance for bad debts at December 31, 2020 is A. 91,620 C. 105,120 B. 102,960 D. 116,190

3) On January 1, 2020 Elisha Company reported Accounts Receivable of P1,300,000, net of allowance for bad debts of P126,000. During the year, Sales (all on credit) amounted to P4,400,000. Collections from customers including recoveries of P24,000 totaled P4,550,000 net of discounts amounting to P147,000. Likewise, P9,000 of receivables were written-off. Elisha Company uses the aging method in determining bad debts, although Elisha Company provides interim bad debts provision equal to 0.5% of net credit sales. The following table shows the corresponding bad debt percentage of Elisha Company's accounts Percentage of AR balance receivable: Age Uncollectability 45 days or less 46 – 90 days over 90 days 5% 10% 45% 30% 25% 15% The required allowance for bad debts at December 31, 2020 is A. 91,620 C. 105,120 B. 102,960 D. 116,190

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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