"During 2020, Oldie Company, which uses the allowance method of accounting for doubtful accounts, recorded a provision for bad debt expense of P25,000 and in addition it wrote off, as uncollectible, accounts receivable of P10,000. As a result of these transactions, net cash flows from operating activities would be calculated (indirect method) by adjusting net income with a" O "P25,000 increase" O "P10,000 increase" O "P15,000 increase" O "P15,000 decrease"

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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"During 2020, Oldie Company, which uses the allowance method of accounting for doubtful accounts, recorded a provision for bad debt expense of P25,000 and in addition it wrote
off, as uncollectible, accounts receivable of P10,000. As a result of these transactions, net cash flows from operating activities would be calculated (indirect method) by adjusting net
income with a"
O "P25,000 increase"
O "P10,000 increase"
O "P15,000 increase"
O "P15,000 decrease"
Transcribed Image Text:"During 2020, Oldie Company, which uses the allowance method of accounting for doubtful accounts, recorded a provision for bad debt expense of P25,000 and in addition it wrote off, as uncollectible, accounts receivable of P10,000. As a result of these transactions, net cash flows from operating activities would be calculated (indirect method) by adjusting net income with a" O "P25,000 increase" O "P10,000 increase" O "P15,000 increase" O "P15,000 decrease"
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