Besoluck company has sales of P480,000 and P450,000 for September 4 points and October respectively. Of the total Sales, 1% is returned. 75% of the total sales account for credit sales and 20% of credit sales avail of the discount of 2%. The company is able to collect 40% of credit sales in the month of sales and 60% is collected in the following month. During October, the company has written off P20,000 of worthless accounts but had collected P13,000 from an account previously written off. The company uses, 10% percent of receivables for estimating doubtful accounts. What amount is debited to doubtful accounts expense if the balance of the allowance for doubtful accounts on Oct 1 is P7,350.50?

Besoluck company has sales of P480,000 and P450,000 for September 4 points and October respectively. Of the total Sales, 1% is returned. 75% of the total sales account for credit sales and 20% of credit sales avail of the discount of 2%. The company is able to collect 40% of credit sales in the month of sales and 60% is collected in the following month. During October, the company has written off P20,000 of worthless accounts but had collected P13,000 from an account previously written off. The company uses, 10% percent of receivables for estimating doubtful accounts. What amount is debited to doubtful accounts expense if the balance of the allowance for doubtful accounts on Oct 1 is P7,350.50?

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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