CPA Inc. is an ecommerce company selling techy workspace docks at 10/10, 5/20, n/30 and it provides for uncollectible accounts based on aging of receivables at year-end. The balance of selected accounts taken from the December 31, 2020 statement of financial position are as follows: Accounts Receivable – P10,800,000 Allowance for Bad Debts – P270,000 The following transactions (in summary) affecting accounts receivable occurred during the year ended December 31, 2021: Sales on account 20,180,000 21,960,000 Cash received from customers Cash received includes the following: Customers paying within the 10-day discount period Customers paying within the 20-day discount period Recovery of accounts written off Customers paying beyond the discount period 11,700,000 3,800,000 106,000 ? Accounts receivable written off as worthless 22,000 512,000 Credit memoranda for sales returns An aging of the accounts receivables and uncollectible accounts on December 31, 2021 revealed the following: Amount 1,150,000 Probability of Non-collection Age Less than 30 days 31-90 days 91-120 days More than 120 days 5% 2,400,000 8% 563,000 10% Balance 27% What are the balances of accounts receivable, related allowance account, and bad debts expense on December 31, 2021?
CPA Inc. is an ecommerce company selling techy workspace docks at 10/10, 5/20, n/30 and it provides for uncollectible accounts based on aging of receivables at year-end. The balance of selected accounts taken from the December 31, 2020 statement of financial position are as follows: Accounts Receivable – P10,800,000 Allowance for Bad Debts – P270,000 The following transactions (in summary) affecting accounts receivable occurred during the year ended December 31, 2021: Sales on account 20,180,000 21,960,000 Cash received from customers Cash received includes the following: Customers paying within the 10-day discount period Customers paying within the 20-day discount period Recovery of accounts written off Customers paying beyond the discount period 11,700,000 3,800,000 106,000 ? Accounts receivable written off as worthless 22,000 512,000 Credit memoranda for sales returns An aging of the accounts receivables and uncollectible accounts on December 31, 2021 revealed the following: Amount 1,150,000 Probability of Non-collection Age Less than 30 days 31-90 days 91-120 days More than 120 days 5% 2,400,000 8% 563,000 10% Balance 27% What are the balances of accounts receivable, related allowance account, and bad debts expense on December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
37.
Choices:
a. P7,092,000, P1,110,130, and P756,130
b. P9,616,000, P1,791,610, and P1,437,610
c. P9,616,000, P1,653,370, and P756,130
d. P9,104,000, P1,653,370, and P1,299,370
Transcribed Image Text:CPA Inc. is an ecommerce company selling techy workspace docks at 10/10, 5/20, n/30 and it provides
for uncollectible accounts based on aging of receivables at year-end. The balance of selected accounts
taken from the December 31, 2020 statement of financial position are as follows:
Accounts Receivable – P10,800,000
Allowance for Bad Debts – P270,000
The following transactions (in summary) affecting accounts receivable occurred during the year ended
December 31, 2021:
Sales on account
20,180,000
Cash received from customers
21,960,000
Cash received includes the following:
Customers paying within the 10-day discount period
Customers paying within the 20-day discount period
Recovery of accounts written off
Customers paying beyond the discount period
11,700,000
3,800,000
106,000
?
Accounts receivable written off as worthless
Credit memoranda for sales returns
22,000
512,000
An aging of the accounts receivables and uncollectible accounts on December 31, 2021 revealed
the following:
Probability of Non-collection
Age
Less than 30 days
31-90 days
91-120 days
More than 120 days
Amount
1,150,000
2,400,000
563,000
Balance
5%
8%
10%
27%
What are the balances of accounts receivable, related allowance account, and bad debts
expense on December 31, 2021?
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