Allowance for doubtful accounts                      60,000 Sales                                                                                                                      8,000,000 Cash collected from customers                                                                       7,000,000   The cash collections included a recovery of P10,000 from a customer whose account had been written off as worthless in 2019. During 2020, it was necessary to recognize doubtful accounts expense of P100,000 and write off worthless customers’ accounts of P30,000. On December 1, 2020, a customer settled an accounts of P30,000. On December 1, 2020, a customer settled an account by issuing a 12%, six-month note for P400,000.   What is the net realizable value of accounts receivable on December 31, 2020?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 44

The financial statements of Kureno Company included the following information:

 

                                                                                January 1, 2020                 December 31, 2020

Accounts Receivable                                           1,200,000                            

Allowance for doubtful accounts                      60,000

Sales                                                                                                                      8,000,000

Cash collected from customers                                                                       7,000,000

 

The cash collections included a recovery of P10,000 from a customer whose account had been written off as worthless in 2019. During 2020, it was necessary to recognize doubtful accounts expense of P100,000 and write off worthless customers’ accounts of P30,000. On December 1, 2020, a customer settled an accounts of P30,000. On December 1, 2020, a customer settled an account by issuing a 12%, six-month note for P400,000.

 

What is the net realizable value of accounts receivable on December 31, 2020?

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