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How much from the total collections were not able to avail of any of the cash discounts?

How much from the total collections were not able to avail of any of the cash discounts?

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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How much from the total collections were not able to avail of any of the cash discounts? 
 
 
 
 
 
The beginning balances of the accounts reccivable and allowance for bad debts accounts of Goodness Co. are P3,000,000 and P30,000, respectively. On your audit of the financial statements for the period ended and as of Decembar 31, 2016, you have gathered the followinginformation: Credit salcs; terms 2/10, 1/15, n/30 Total Collections 10,000,000 7,430,000 Accounts written off 20,000 Recoveries 5,000 Sales returns 15,000 Additional information 50% of the credit sales were collected within the 10-day discount period and 20% were collected within the 15-day discount period Recoveries were immediately collected upon setting back the reccivable The entity follows the percentage of accounts receivable to determine the balance of allowance for bad debts
Transcribed Image Text:The beginning balances of the accounts reccivable and allowance for bad debts accounts of Goodness Co. are P3,000,000 and P30,000, respectively. On your audit of the financial statements for the period ended and as of Decembar 31, 2016, you have gathered the followinginformation: Credit salcs; terms 2/10, 1/15, n/30 Total Collections 10,000,000 7,430,000 Accounts written off 20,000 Recoveries 5,000 Sales returns 15,000 Additional information 50% of the credit sales were collected within the 10-day discount period and 20% were collected within the 15-day discount period Recoveries were immediately collected upon setting back the reccivable The entity follows the percentage of accounts receivable to determine the balance of allowance for bad debts
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