HUGZ COMPANY uses the aging analysis in determining its doubtful accounts. Accounts receivable shows a balance of P203,470 as of December 31, 2021 before adjustment. Analysis of the accounts revealed the following: Accounts Receivable Estimated Loss Rate Estimated Loss Age of Accounts Not yet due P 54,600 1% 3% 6% 10% 75,900 1-30 days due 15,750 31-60 days due 31,820 61-90 days due 16,900 91-120 days due 8,500 Over 120 days due 203,470 20% 50% P REQUIRED: Complete the table and prepare the adjusting entry to record the doubtful accounts expense under each of the following unrelated cases: Case 1: Allowance for doubtful accounts has a balance of P10,000 before adjustment. Case 2: Assume that the company has a zero balance in the allowance for doubtful account during the first year operations.

HUGZ COMPANY uses the aging analysis in determining its doubtful accounts. Accounts receivable shows a balance of P203,470 as of December 31, 2021 before adjustment. Analysis of the accounts revealed the following: Accounts Receivable Estimated Loss Rate Estimated Loss Age of Accounts Not yet due P 54,600 1% 3% 6% 10% 75,900 1-30 days due 15,750 31-60 days due 31,820 61-90 days due 16,900 91-120 days due 8,500 Over 120 days due 203,470 20% 50% P REQUIRED: Complete the table and prepare the adjusting entry to record the doubtful accounts expense under each of the following unrelated cases: Case 1: Allowance for doubtful accounts has a balance of P10,000 before adjustment. Case 2: Assume that the company has a zero balance in the allowance for doubtful account during the first year operations.

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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