ember 31, 2020: punts receivable Php 400,000 wance for uncollectible accounts8,400 ng completed the following transaction A. Net credit sales, Php 4,000,000. B. Collections on accounts, Php 3,870, Write-off of uncollectible accounts,
ember 31, 2020: punts receivable Php 400,000 wance for uncollectible accounts8,400 ng completed the following transaction A. Net credit sales, Php 4,000,000. B. Collections on accounts, Php 3,870, Write-off of uncollectible accounts,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
What is the answer in D?
Transcribed Image Text:(MODIFIED) Spring Corporation has the following account balances on
December 31, 2020:
Accounts receivable Php 400,000
Allowance for uncollectible accounts8,400
Spring completed the following transactions in 2019:
А.
Net credit sales, Php 4,000,000.
В.
Collections on accounts, Php 3,870,000.
С.
Write-off of uncollectible accounts, Php 10,000.
D. Recovery of accounts previously written-off, Php 2,000.
Е.
Uncollectible accounts expense, 2/3 of 1% of net credit sales.
REQUIRED:
A. Journalize the foregoing transactions.
Compute the balance of accounts receivable and allowance for uncollectible
accounts at December 31, 2020. What amount of Accounts receivable, net would
Spring report on its December 31, 2020 balance sheet?
Assume that Spring uses the aging of accounts instead of the percent of sales
method in estimating uncollectible accounts. Analysis indicates that Php 30,800
of outstanding accounts on December 31, 2020 may prove to be uncollectible.
Compute for the uncollectible accounts expense and the net realizable value of
accounts receivable.
С.
Which among the method in this case has the higher uncollectible expense
account?
D.
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