Goyo uses the allowance account for uncollectible trade accounts receivable. The allowance is based upon 3% of past due accounts (over 120 days) and 1% of current accounts as of the close of each month. Due to changing economic conditions and climate, the number of past-due accounts has increased insignificantly, and management has decided to increase the percentage based on past due accounts to 5%. The following balances are available: As of Nov. 30, 20x3 Debit Credit Accounts Receivable P780,000 - Past due accounts (included in A/R) 24,000 - Allowance for Doubtful Accounts - P56,000 As of Dec. 31, 20x3 Debit Credit Accounts Receivable P860,000 - Past due accounts (included in A/R) 60,000 - Allowance for Doubtful Accounts 18,000 - I NEED ADJUSTING ENTRIES FOR THIS. THANKSSS
Goyo uses the allowance account for uncollectible trade accounts receivable. The allowance is based upon 3% of past due accounts (over 120 days) and 1% of current accounts as of the close of each month. Due to changing economic conditions and climate, the number of past-due accounts has increased insignificantly, and management has decided to increase the percentage based on past due accounts to 5%. The following balances are available: As of Nov. 30, 20x3 Debit Credit Accounts Receivable P780,000 - Past due accounts (included in A/R) 24,000 - Allowance for Doubtful Accounts - P56,000 As of Dec. 31, 20x3 Debit Credit Accounts Receivable P860,000 - Past due accounts (included in A/R) 60,000 - Allowance for Doubtful Accounts 18,000 - I NEED ADJUSTING ENTRIES FOR THIS. THANKSSS
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
- Goyo uses the allowance account for uncollectible trade
accounts receivable . The allowance is based upon 3% of past due accounts (over 120 days) and 1% of current accounts as of the close of each month. Due to changing economic conditions and climate, the number of past-due accounts has increased insignificantly, and management has decided to increase the percentage based on past due accounts to 5%. The following balances are available:
|
As of Nov. 30, 20x3 |
||
|
|
Debit |
Credit |
|
Accounts Receivable |
P780,000 |
- |
|
Past due accounts (included in A/R) |
24,000 |
- |
|
Allowance for Doubtful Accounts |
- |
P56,000 |
|
As of Dec. 31, 20x3 |
||
|
|
Debit |
Credit |
|
Accounts Receivable |
P860,000 |
- |
|
Past due accounts (included in A/R) |
60,000 |
- |
|
Allowance for Doubtful Accounts |
18,000 |
- |
I NEED
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