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Based on the aforementioned data and the result of you audit, determine the following a. The adjusted balance of the Allowance for Doubtful account for December 31, 2022 b. The net adjustment to the Allowance for Doubtful account c. The Doubtful Account expense for the year 2022.

Based on the aforementioned data and the result of you audit, determine the following a. The adjusted balance of the Allowance for Doubtful account for December 31, 2022 b. The net adjustment to the Allowance for Doubtful account c. The Doubtful Account expense for the year 2022.

FINANCIAL ACCOUNTING
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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An aging schedule of the accounts receivable as of December 31, 2022 is presented below: Collectible Adjusted Balance Rate Account Classification 0 to 1 month 1 to 3 months 425,000 (net) 99% 620,000 (net) 98% 400,000 97% 3 to 6 months Over 6 months 350,000 Definitely Uncollectible, P50,000; P140,000 is 50% uncollectible; Remainder is 80% collectible There is a credit balance in one account receivable (0 to 1 month) of P75,000 which represents an advance on a sales contract. STUVWXYZ was able to deliver the goods to the customer on credit. • There is a credit balance in one of the 1 to 3 months accounts receivable of P80,000 for which the merchandise will be accepted by the customer. Based on the aforementioned data and the result of you audit, determine the following a. The adjusted balance of the Allowance for Doubtful account for December 31, 2022 b. The net adjustment to the Allowance for Doubtful account c. The Doubtful Account expense for the year 2022.
Transcribed Image Text:An aging schedule of the accounts receivable as of December 31, 2022 is presented below: Collectible Adjusted Balance Rate Account Classification 0 to 1 month 1 to 3 months 425,000 (net) 99% 620,000 (net) 98% 400,000 97% 3 to 6 months Over 6 months 350,000 Definitely Uncollectible, P50,000; P140,000 is 50% uncollectible; Remainder is 80% collectible There is a credit balance in one account receivable (0 to 1 month) of P75,000 which represents an advance on a sales contract. STUVWXYZ was able to deliver the goods to the customer on credit. • There is a credit balance in one of the 1 to 3 months accounts receivable of P80,000 for which the merchandise will be accepted by the customer. Based on the aforementioned data and the result of you audit, determine the following a. The adjusted balance of the Allowance for Doubtful account for December 31, 2022 b. The net adjustment to the Allowance for Doubtful account c. The Doubtful Account expense for the year 2022.
In connection with your examination of the financial statements of STUVWXYZ Corporation for the year ended December 31, 2022. You were able to obtain certain information in the course of your audit of the Accounts Receivable and related accounts. Following data pertains to Allowance for Doubtful Account of the company: P 70,000 Beginning Balance Written-Off 150,000* 20,000 Recoveries from write-offs Bad Debts Expense recognized on 12-31-2022 250,000 *Excludes the P50,000 uncollectible in Over 6 months account category. An aging schedule of the accounts receivable as of December 31, 2022 is presented below: Account Collectible Adjusted Balance Rate Classification 0 to 1 month 1 to 3 months 99% 425,000 (net) 620,000 (net) 98% 3 to 6 months 400,000 97% Over 6 months 350,000 Definitely Uncollectible, P50,000; P140,000 is 50% uncollectible; Remainder is 80% collectible
Transcribed Image Text:In connection with your examination of the financial statements of STUVWXYZ Corporation for the year ended December 31, 2022. You were able to obtain certain information in the course of your audit of the Accounts Receivable and related accounts. Following data pertains to Allowance for Doubtful Account of the company: P 70,000 Beginning Balance Written-Off 150,000* 20,000 Recoveries from write-offs Bad Debts Expense recognized on 12-31-2022 250,000 *Excludes the P50,000 uncollectible in Over 6 months account category. An aging schedule of the accounts receivable as of December 31, 2022 is presented below: Account Collectible Adjusted Balance Rate Classification 0 to 1 month 1 to 3 months 99% 425,000 (net) 620,000 (net) 98% 3 to 6 months 400,000 97% Over 6 months 350,000 Definitely Uncollectible, P50,000; P140,000 is 50% uncollectible; Remainder is 80% collectible
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