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

See similar textbooks

Similar questions

Answer with explanation
Alpesh
Answer provide Please
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
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.
Don't provide answers in image format
Exercise 228 (Part Level Submission) The percentage of receivables approach to estimating bad debts expense is used by Oriole Company. On February 28 (the fiscal yearend), the firm had accounts receivable in the amount of $573,000 and Allowance for Doubtful Accounts had a credit balance of $1,850 before adjustment. Net credit sales for February amounted to $3,480,000. The credit manager estimated that uncollectible accounts would amount to 6% of accounts receivable. On March 10, an accounts receivable from Mark Dole for $2,100 was determined to be uncollectible and written off. However, on March 31, Dole received an inheritance and immediately paid his past due account in full. (a) Prepare the journal entries made by Oriole Company on the below dates: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) 1. February 28 2. March 10 3. March 31 Date Account Titles and…
At the beginning of the current period, Skysong Corp. had balances in Accounts Receivable of $190,400 and in Allowance for Doubtful Accounts of $9,040 (credit). During the period, it had net credit sales of $839,100 and collections of $760,090. It wrote off as uncollectible accounts receivable of $6,576. However, a $3,350 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,900 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. No. Account Titles and Explanation Debit Credit (a) Enter an account title to record sales Enter a debit amount…
This question uses the same facts as the previous question and is repeated for your convenience. The following information relates to Hanover Foods, Inc. for the year 20X1: Accounts receivable (January 1, 20X1) Credit sales during 20X1 Collections from credit customers during 20X1 Customer account written off as uncollectible during 20X1 Allowance for Doubtful (Uncollectible) Accounts $334,000 850,000 725,000 12,000 (this balance is given after writing-off uncollectible accounts and has a credit balance) Estimated uncollectible accounts based on aging analysis If the aging approach is used to estimate bad debts, what amount should be recorded as bad debts expense for 20X1? 1,700 13,200
4. The records of Quest Company included the following accounts (with normal balances). Cash sales, current year $2,160,000 Credit sales, current year 1,620,000 Balance in accounts receivable, December 31 prior year Balance in accounts receivable, December 31 current year Balance in allowance for doubtful accounts, December 31 prior year (Cr.) Accounts written off as uncollectible during the current year The company estimates bad debts as 2% of receivables at year-end to be uncollectible. Prepare the adjusting entry at December 31 of the current year to adjust the allowance for doubtful accounts. Date Account Name Cr. Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts ◆ Dr. 324,000 Dr. 360,000 Dr. 5,400 Cr. 9,000 0 x 0✔ 0 0 x
19. The accounts receivable turnover is 8.14, and average net accounts receivable during the period is $400,000. What is the amount of net credit sales for the period? Brief Exercises Identify different types of receivables. BE8.1 (LO 1), C The following are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balan a. Sold merchandise on account for $64,000 to a customer. b. Received a promissory note of $57,000 for services performed. c. Advanced $10,000 to an employee. Record basic accounts receivable transactions. PEO AR Rooord the following transactions on the books of Jarvis Co. (Omit cost of goods sold entries.)