Lean Corporation provided the following information regarding its Notes Receivable as at December 31, 2021. NOTE GROSS CARRYING AMOUNT LIFETIME EXPECTED CREDIT LOSSES 12-MONTH EXPECTED CREDIT LOSSES CREDIT RISK ASSESSMENT A P 3,000,000 P 300,000 P 50,000 Low credit risk B 2,000,000 400,000 40,000 31 days past due C 1,000,000 500,000 60,000 Credit-impaired The loss allowance that the entity should recognize as at December 31, 2021 is A. P 590,000 B. P 900,000 B. P 950,000 C. P 1,200,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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. Lean Corporation provided the following information regarding its Notes Receivable as at December 31, 2021.

 

 

NOTE

 

GROSS CARRYING AMOUNT

LIFETIME EXPECTED CREDIT LOSSES

12-MONTH EXPECTED CREDIT LOSSES

 

CREDIT RISK ASSESSMENT

A

P             3,000,000

P                 300,000

P                 50,000

Low credit risk

B

               2,000,000

                   400,000

                   40,000

31 days past due

C

               1,000,000

                   500,000

                   60,000

Credit-impaired

The loss allowance that the entity should recognize as at December 31, 2021 is

A. P 590,000

B. P 900,000

B. P 950,000

C. P 1,200,000

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