The following balances have been excerpted from Tito Piccolo’s statement of financial position: December 31January 1Prepaid InsuranceP 6,000P 7,500Interest Receivable3,70014,500Salaries Payable61,50053,000Accounts Receivable550,000415,000Allowance for bad debts40,00025,000 Tito Piccolo Company reported the following during 2020 the following items:Insurance premiums paidP 41,500Interest collected123,500Salaries paid481,000Sales1,980,000 Assuming that the company wrote off P25,000 and subsequently recovered P20,000. Had the cash basis of accounting been used instead, how much would have been reported as receipt for 2020? (no peso sign, no comma, whole number only)

Under cash basis of accounting, revenue is recognized upon receipt and expense is recognized upon…

Answered: cash basis of

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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The following balances have been excerpted from Tito Piccolo’s statement of financial position:

	December 31	January 1
Prepaid Insurance	P 6,000	P 7,500
Interest Receivable	3,700	14,500
Salaries Payable	61,500	53,000
Accounts Receivable	550,000	415,000
Allowance for bad debts	40,000	25,000

Tito Piccolo Company reported the following during 2020 the following items:

Insurance premiums paid	P 41,500
Interest collected	123,500
Salaries paid	481,000
Sales	1,980,000

Assuming that the company wrote off P25,000 and subsequently recovered P20,000. Had the cash basis of accounting been used instead, how much would have been reported as receipt for 2020? (no peso sign, no comma, whole number only)

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