FDNACCT Co. has the following balances on December 31, 2021 before any adjustments: Accounts Receivable = P890,000 Allowance for Doubtful Accounts = P3,250 Total credit sales = P3,000,000 Provision for doubtful accounts is estimated at 5% of Accounts Receivable. How much should be credited to the Allowance for Doubtful Accounts as adjustment?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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FDNACCT Co. has the following balances on December 31, 2021 before
any adjustments:
Accounts Receivable = P890,000
Allowance for Doubtful Accounts = P3,250
Total credit sales = P3,000,000
Provision for doubtful accounts is estimated at 5% of Accounts
Receivable. How much should be credited to the Allowance for Doubtful
Accounts as adjustment?
Transcribed Image Text:FDNACCT Co. has the following balances on December 31, 2021 before any adjustments: Accounts Receivable = P890,000 Allowance for Doubtful Accounts = P3,250 Total credit sales = P3,000,000 Provision for doubtful accounts is estimated at 5% of Accounts Receivable. How much should be credited to the Allowance for Doubtful Accounts as adjustment?
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