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Mickey Mouse Company has the following data relating to accounts receivable for the year ended December 31, 2019: Accounts Receivable, January 1, 2019 Allowance for Bad Debts, January 1, 2019 Sales during the year, all on account terms: 2/10, 1/15, n/30 Cash received from customers during the year Accounts written off during the year P480,000 19,200 2,400,000 2,560,000 17,600 An analysis of cash received from customers during the year revealed that P1,411,200 was

Mickey Mouse Company has the following data relating to accounts receivable for the year ended December 31, 2019: Accounts Receivable, January 1, 2019 Allowance for Bad Debts, January 1, 2019 Sales during the year, all on account terms: 2/10, 1/15, n/30 Cash received from customers during the year Accounts written off during the year P480,000 19,200 2,400,000 2,560,000 17,600 An analysis of cash received from customers during the year revealed that P1,411,200 was

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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What is the accounts receivable balance at December 31, 2019?

Mickey Mouse Company has the following data relating to accounts receivable for the year ended December 31, 2019: Accounts Receivable, January 1, 2019 Allowance for Bad Debts, January 1, 2019 Sales during the year, all on account terms: 2/10, 1/15, n/30 Cash received from customers during the year Accounts written off during the year P480,000 19,200 2,400,000 2,560,000 17,600 An analysis of cash received from customers during the year revealed that P1,411,200 was received from customers availing the 10-day discount period, P792,000 from customers availing the 15-day discount period, P4,800 represented recovery of accounts written off, and the balance was received from customers paying beyond the discount period. Mickey Mouse's year-end balance of allowance for bad debts was estimated to be 5% of the outstanding accounts receivable as at December 31, 2019, based on the aging of the accounts.
Transcribed Image Text:Mickey Mouse Company has the following data relating to accounts receivable for the year ended December 31, 2019: Accounts Receivable, January 1, 2019 Allowance for Bad Debts, January 1, 2019 Sales during the year, all on account terms: 2/10, 1/15, n/30 Cash received from customers during the year Accounts written off during the year P480,000 19,200 2,400,000 2,560,000 17,600 An analysis of cash received from customers during the year revealed that P1,411,200 was received from customers availing the 10-day discount period, P792,000 from customers availing the 15-day discount period, P4,800 represented recovery of accounts written off, and the balance was received from customers paying beyond the discount period. Mickey Mouse's year-end balance of allowance for bad debts was estimated to be 5% of the outstanding accounts receivable as at December 31, 2019, based on the aging of the accounts.
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