42. On January 1, 20X4, Alejandro Company reported accounts receivable of P2,000,000 and allowance for doubtful accounts of P100,000. The entity provided the following data: Credit Sales Write-Offs Recoveries 20X1 20X2 20X3 20X4 P11,100,000 12,250,000 14,650,000 15,000,000 P260,000 295,000 300,000 200,000 P22,000 37,000 36,000 50,000 The collections from customers during 20X4 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually using the experience of the three (3) years before the current year. What amount should be reported as doubtful accounts expense for 20X4? A. P39,000 B. P31,000 C. P28,000 D. P35,000

42. On January 1, 20X4, Alejandro Company reported accounts receivable of P2,000,000 and allowance for doubtful accounts of P100,000. The entity provided the following data: Credit Sales Write-Offs Recoveries 20X1 20X2 20X3 20X4 P11,100,000 12,250,000 14,650,000 15,000,000 P260,000 295,000 300,000 200,000 P22,000 37,000 36,000 50,000 The collections from customers during 20X4 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually using the experience of the three (3) years before the current year. What amount should be reported as doubtful accounts expense for 20X4? A. P39,000 B. P31,000 C. P28,000 D. P35,000

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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4.The following data were available for ABC Company at Dec 31, 20X2:Accounts Receivable, beg P15,000Accounts Receivable, end P10,000Collection of accounts 450,000Sales returns, P8,000 (25% is related to cash sales)Sales discounts, P5,000How much were the credit sales during the period? 451,000 453,000 456,000 458,000
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A 15
22. The unadjusted trial balance of Serrano Company at December 31, 20XX included the following accounts: Debit Credit Allowance for doubtful accounts 16,000 Sales 7,225,000 Sales return 125,000 Serrano estimates its uncollectible receivables at 2% of net sales. What should be reported as doubtful accounts expense for 20XX?
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Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 280,000 $ 700,000 In addition, its unadjusted trial balance includes the following items. $ 210,000 debit $ 2,500 debit Accounts receivable Allowance for doubtful accounts 2. Bad debts are estimated to be 2% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: $ 0
8
23. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
Current Attempt in Progress At the beginning of the current period, Whispering Ltd. had balances in Accounts Receivable of £288,000 and in Allowance for Doubtful Accounts of £9,300 (credit). During the period, it had net credit sales of £860,000 and collections of £817,000. It wrote off as uncollectible accounts receivable of £6,800. However, a £3,600 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total £24,300 at the end of the period. (Omit cost of goods sold entries.) (a) Prepare the entries to record sales and collections during the period.. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period.
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