On December 31, the end of the accounting period, Maricall Center has an outstanding Accounts Receivable of Php 72,000 and an Allowance for Impairment Loss balance of Php 600 prior to the year-end adjustments. Bad debts are estimated at 2% of the accounts receivable. How much are the bad debts expense to be charged to the Impairment Loss account? Prepare the adjusting journal entry.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, the end of the accounting period, Maricall Center has an outstanding Accounts Receivable of Php 72,000 and an Allowance for Impairment Loss balance of Php 600 prior to the year-end adjustments. Bad debts are estimated at 2% of the accounts receivable. How much are the bad debts expense to be charged to the Impairment Loss account? Prepare the adjusting journal entry.

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