An analysis of the accounts receivable of Grammar Inc. shows the following information: Age Balance % Collectible Su Current P 3,500,000 2,000,000 1,200,000 1,000,000 800,000 400,000 200,000 100,000 99.5 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due a91 to 120 days past due 121 to 180 days past due | 181 to 360 days past due |More than 360 days past due 98 95 92 85 70 50 o Before any adjustments were made, Grammar's allowance for doubtful accounts had a balance of P80,000. 1. Determine the required balance of Grammar's doubtful accounts at the end of the reporting period. 2. Determine the doubtful accounts expense Grammar should recognize during the period. 3. Determine the net realizable value of Grammar's accounts receivable at the end of the period.
An analysis of the accounts receivable of Grammar Inc. shows the following information: Age Balance % Collectible Su Current P 3,500,000 2,000,000 1,200,000 1,000,000 800,000 400,000 200,000 100,000 99.5 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due a91 to 120 days past due 121 to 180 days past due | 181 to 360 days past due |More than 360 days past due 98 95 92 85 70 50 o Before any adjustments were made, Grammar's allowance for doubtful accounts had a balance of P80,000. 1. Determine the required balance of Grammar's doubtful accounts at the end of the reporting period. 2. Determine the doubtful accounts expense Grammar should recognize during the period. 3. Determine the net realizable value of Grammar's accounts receivable at the end of the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kindly answer in good accounting form. Preferably in table :)
Transcribed Image Text:An analysis of the accounts receivable of Grammar Inc. shows the following
information:
Age
Balance
% Collectible
P3,500,000
2,000,000
1,200,000
1,000,000
Aud 800,000
Current
99.5
1 to 30 days past due
31 to 60 days past due
61 to 90 days past due
91 to 120 days past due
121 to 180 days past due
181 to 360 days past due
More than 360 days past due
98
95
92
85
400,000
70
200,000
100,000
50
Before any adjustments were made, Grammar's allowance for doubtful accounts
had a balance of P80,000.
1. Determine the required balance of Grammar's doubtful accounts at the end of
the reporting period.
2. Determine the doubtful accounts expense Grammar should recognize during
the period.
3. Determine the net realizable value of Grammar's accounts receivable at the
end of the period.
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