Nova Accounts receivable, net of P520,000 allowance 2018: for doubtful accounts Interest receivable Notes receivable 3,840,000 190,000 4,000,000 , The notės receivable comprised: P1.000,000 note dated October 31, 2018, with principal and interest payable on October 31, 2019. P3.000,000 note dated March 31, 2018, with principal and 8% interest payable on March 31, 2019. • During 2019, sales revenue totaled P21,200,000, P19,800,000 cash was collected from customers, and P410,000 in accounts receivable were written off. All sales are made on a credit basis. • Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 1. What amount should be reported as interest income for 2019? а. 110,000 b. 240,000 60,000 d. 80,000 с. 2. What amount should be reported as doubtful accounts expense for 2019? a. 535,000 b. 425,000 c. 110,000 d. 410,000

Nova Accounts receivable, net of P520,000 allowance 2018: for doubtful accounts Interest receivable Notes receivable 3,840,000 190,000 4,000,000 , The notės receivable comprised: P1.000,000 note dated October 31, 2018, with principal and interest payable on October 31, 2019. P3.000,000 note dated March 31, 2018, with principal and 8% interest payable on March 31, 2019. • During 2019, sales revenue totaled P21,200,000, P19,800,000 cash was collected from customers, and P410,000 in accounts receivable were written off. All sales are made on a credit basis. • Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 1. What amount should be reported as interest income for 2019? а. 110,000 b. 240,000 60,000 d. 80,000 с. 2. What amount should be reported as doubtful accounts expense for 2019? a. 535,000 b. 425,000 c. 110,000 d. 410,000

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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