accounts at the amount indicated by the year-end aging provided for uncollectible accounts expense under the accounting method for estimating the allowance for doubt From inception of operations, Comprehensive Company allowance method using the percentage of sales method. No year-end adjustments to the allowance account were made The balance in the allowance for doubtful accounts was P1,000,000 at the beginning of current year. During the.current year, credit sales totaled P20,000,000. interim provisions for doubtful accounts were made at 2% credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written off amounted te P50,000. An aging of accounts receivable was made for the first tim on December 31. Aging Balance Uncollectible 60 6,000,000 2,000,000 1,500,000 500,000 10% 61 180 360 360 20% 181 30% Over 50% Based on the review of collectibility of the account balano in the "over 360 days" aging category, additional accoun totaling P100,000 are to be written off on December 31. Effective with the current year, the entity adopted aE accounting method for estimating the allowance for dou 'accounts receivable.
accounts at the amount indicated by the year-end aging provided for uncollectible accounts expense under the accounting method for estimating the allowance for doubt From inception of operations, Comprehensive Company allowance method using the percentage of sales method. No year-end adjustments to the allowance account were made The balance in the allowance for doubtful accounts was P1,000,000 at the beginning of current year. During the.current year, credit sales totaled P20,000,000. interim provisions for doubtful accounts were made at 2% credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written off amounted te P50,000. An aging of accounts receivable was made for the first tim on December 31. Aging Balance Uncollectible 60 6,000,000 2,000,000 1,500,000 500,000 10% 61 180 360 360 20% 181 30% Over 50% Based on the review of collectibility of the account balano in the "over 360 days" aging category, additional accoun totaling P100,000 are to be written off on December 31. Effective with the current year, the entity adopted aE accounting method for estimating the allowance for dou 'accounts receivable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kindly help me solve no. 4 and 5 with clear solution please. Thank you so much
Transcribed Image Text:1. What amount was reported as allowance for doubtful
accounts on December 31 before adjustment?
а. 1,100,000
b. 1,150,000
с. 1,250,000.
d. 1,200,000
00
2. What amount should be reported as required allowance
for doubtful accounts on, December 31?
a. 1,650,000i
b. 1,950,000
с. 1,700,000
d. 1,450,000
3. What amount should be reported as doubtful accounts
expense for the current year?
a. 1,200,000
b. 1,650,000
900,000
d.
с.
950,000
4. What is the year-end adjustment to the allowance for
doubtful accounts on December 31?
a. 900,000 debit
b. 900,000 credit
C. 500,000 debit
d. 500,000 credit
5. What amount should be reported as net realizable value
of accounts receivable on December 31?
a. 9,900,000
b. 8,250,000
c. 8,350,000
d. 8,200,000
Transcribed Image Text:No year-end adjustments to the allowance account were made.
During the.current year, credit sales totaled P20,000,000,
accounts at the amount indicated by the year-end aging
From inception of operations, Comprehensive Company
in the "over 360 days" aging category, additional accounts
Effective with the current year, the entity adopted a new
accounting method for estimating the allowance for doubtful
provided for uncollectible accounts expense under the
The balance in the allowance for doubtful accounts was
allowance method using the percentage of sales method.
No year-end adjustments to the allowance account were made
The balance in the allowance for doubtful accounts was
P1,000,000 at the beginning of current year.
During the.current year, credit sales totaled P20,000,000
interim provisions for doubtful accounts were made at 2% of
credit sales, bad debts of P200,000 were written off, and
recoveries of accounts previously written off amounted to
P50,000.
An aging of accounts receivable was made for the first time
on December 31.
Aging
Balance
Uncollectible
0 -
60
6,000,000
2,000,000
1,500,000
500,000
10%
61 – 180
20%
181
Over
360
30%
360
50%
Based on the review of collectibility of the account balances
in the "over 360 days" aging category, additional accoune
totaling P100,000 are to be written off on December 31.
Effective with the current year, the entity adopted aA
accounting method for estimating the allowance for doube
accounts at the amount indicated by the vear-end agne
'accounts receivable.
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