During 2020 transactions relating to the accounts were as follows: Sales on account P4,800,000 Cash received from collection of receivable totaled P3,920,000 after discounts of P80,000 were allowed fro prompt payment Credit memo issued to customers fro sales returns P60,000 Customers accounts of P20,000 were ascertained worthless and written off Recovered P5,000 of accounts written of prior to 2020 Received a 90 day 12 pct note for P25,000 from a customer on an overdue account Accounts receivable of P700,000 have been pledged to a local bank on a loan of P400,000. Collections of P150,000 were made on these receivables but included in the collections previously given and applied as partial payment to the loan Based on assessment of the lifetime expected credit loss of receivables, it is estimated that allowance for uncollectible accounts should beP59,000 at Dec 31. Recorded the accrued interest on the note in f. Note was dated Dec 1,2020. Required: Prepare journal entries to record the transactions. After preparing the entries, determine the amortized cost of accounts receivable at Dec 31,2020
During 2020 transactions relating to the accounts were as follows:
Sales on account P4,800,000
Cash received from collection of receivable totaled P3,920,000 after discounts of P80,000 were allowed fro prompt payment
Credit memo issued to customers fro sales returns P60,000
Customers accounts of P20,000 were ascertained worthless and written off
Recovered P5,000 of accounts written of prior to 2020
Received a 90 day 12 pct note for P25,000 from a customer on an overdue account
Based on assessment of the lifetime expected credit loss of receivables, it is estimated that allowance for uncollectible accounts should beP59,000 at Dec 31.
Recorded the accrued interest on the note in f. Note was dated Dec 1,2020.
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