FDN Company reported Accounts Receivable of P10,000,000 on December 31, 2021. Allowance for Doubtful Accounts was P1,000,000 on January 1, 2021. The following information is provided pertaining to the company's aging analysis. Time outstanding Accounts receivable Percent uncollectible Under 90 days P7,200,000 3% 91 - 180 days 1,800,000 8% 181 - 360 days 1,000,000 60% How much should be reported as Allowance for Doubtful Accounts as of December 31, 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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FDN Company reported Accounts Receivable of P10,000,000 on December 31,
2021. Allowance for Doubtful Accounts was P1,000,000 on January 1, 2021.
The following information is provided pertaining to the company's aging
analysis.
Time outstanding
Accounts receivable
Percent uncollectible
Under 90 days
P7,200,000
3%
91 - 180 days
1,800,000
8%
181 - 360 days
1,000,000
60%
How much should be reported as Allowance for Doubtful Accounts as of
December 31, 2021?
Transcribed Image Text:FDN Company reported Accounts Receivable of P10,000,000 on December 31, 2021. Allowance for Doubtful Accounts was P1,000,000 on January 1, 2021. The following information is provided pertaining to the company's aging analysis. Time outstanding Accounts receivable Percent uncollectible Under 90 days P7,200,000 3% 91 - 180 days 1,800,000 8% 181 - 360 days 1,000,000 60% How much should be reported as Allowance for Doubtful Accounts as of December 31, 2021?
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