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Happy Breakup Corp.'s accounts receivable subsidiary ledger shows the following information: ACCOUNT BALANCE INVOICE CUSTOMER DECEMBER 31, 20x7 DATE AMOUNT P14,000 21,180 12,000 8,920 20,000 10,600 23,140 22,000 19,200 12,400 17,400 Wala Label, Inc. (WL) P35,180 1206/x7 11/29/x7 Wala Ka Jowa, Co. (WKJ) P20,920 09/27/x7 08/20/x7 Walang Forever Corp. (WF) P30,600 12/08/x7 10/25/x7 Sana All Co. (SA) P45,140 11/17/x7 10/09/x7 M.U. Inc. P31,600 7א1212 12/02/x7 Malaon Ka Corp. (MK) P17,400 09/12/x7 The estimated bad debts rates below are based on Happy Breakup's receivable collection experience. Age of Accounts Rate 0- 30 days 31 - 60 days 61 – 90 days 91 – 120 days Over 120 days 1% 1.5% 3% 10% 50% The allowance for bad debts account a debit balance of P4,000 on December 31, 20x7,

Happy Breakup Corp.'s accounts receivable subsidiary ledger shows the following information: ACCOUNT BALANCE INVOICE CUSTOMER DECEMBER 31, 20x7 DATE AMOUNT P14,000 21,180 12,000 8,920 20,000 10,600 23,140 22,000 19,200 12,400 17,400 Wala Label, Inc. (WL) P35,180 1206/x7 11/29/x7 Wala Ka Jowa, Co. (WKJ) P20,920 09/27/x7 08/20/x7 Walang Forever Corp. (WF) P30,600 12/08/x7 10/25/x7 Sana All Co. (SA) P45,140 11/17/x7 10/09/x7 M.U. Inc. P31,600 7א1212 12/02/x7 Malaon Ka Corp. (MK) P17,400 09/12/x7 The estimated bad debts rates below are based on Happy Breakup's receivable collection experience. Age of Accounts Rate 0- 30 days 31 - 60 days 61 – 90 days 91 – 120 days Over 120 days 1% 1.5% 3% 10% 50% The allowance for bad debts account a debit balance of P4,000 on December 31, 20x7,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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38. The company’s accounts receivable under “61-90 days” category totaled
a. P32,600
b. P44,320
c. P44,600
d. P42,000

39. The allowance for bad debts to be reported on the balance sheet at December 31, 20x7, is
a. P13,199
b. P6,199
c. P9,699
d. P9,043


40. What entry should be made on December 31, 20x7, to adjust the allowance for bad debts
account?
a. Bad debt expense 13,699
Allowance for bad debts 13,699
b. Bad debt expense 5,199
Allowance for bad debts 5,199
c. Allowance for bad debts 5,199
Bad debts expense 5,199
d. Bad debt expense 9,699
Allowance for bad debts 9,699

Happy Breakup Corp.'s accounts receivable subsidiary ledger shows the following information: ACCOUNT BALANCE INVOICE CUSTOMER DECEMBER 31, 20x7 DATE AMOUNT 12/06/x7 11/29/x7 09/27/x7 08/20/x7 Wala Label, Inc. (WL) P35,180 P14,000 21,180 12,000 8,920 20,000 10,600 23,140 Wala Ka Jowa, Co. (WKJ) P20,920 Walang Forever Corp. (WF) P30,600 12/08/x7 10/25/x7 11/17/x7 10/09/x7 Sana All Co. (SA) P45,140 22,000 12/12/x7 12/02/x7 09/12/x7 M.U. Inc. P31,600 19,200 12,400 17,400 Malaon Ka Corp. (MK) P17,400 The estimated bad debts rates below are based on Happy Breakup's receivable collection experience. Age of Accounts Rate 0- 30 days 31 – 60 days 61 – 90 days 91 – 120 days Over 120 days 1% 1.5% 3% 10% 50% The allowance for bad debts account a debit balance of P4,000 on December 31, 20x7, before adjustment. 38 The comnany's accounte receivable under "61.00 dave" category totaled
Transcribed Image Text:Happy Breakup Corp.'s accounts receivable subsidiary ledger shows the following information: ACCOUNT BALANCE INVOICE CUSTOMER DECEMBER 31, 20x7 DATE AMOUNT 12/06/x7 11/29/x7 09/27/x7 08/20/x7 Wala Label, Inc. (WL) P35,180 P14,000 21,180 12,000 8,920 20,000 10,600 23,140 Wala Ka Jowa, Co. (WKJ) P20,920 Walang Forever Corp. (WF) P30,600 12/08/x7 10/25/x7 11/17/x7 10/09/x7 Sana All Co. (SA) P45,140 22,000 12/12/x7 12/02/x7 09/12/x7 M.U. Inc. P31,600 19,200 12,400 17,400 Malaon Ka Corp. (MK) P17,400 The estimated bad debts rates below are based on Happy Breakup's receivable collection experience. Age of Accounts Rate 0- 30 days 31 – 60 days 61 – 90 days 91 – 120 days Over 120 days 1% 1.5% 3% 10% 50% The allowance for bad debts account a debit balance of P4,000 on December 31, 20x7, before adjustment. 38 The comnany's accounte receivable under "61.00 dave" category totaled
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