Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, 2021, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit sales Writeoffs Recoveries 2018 2019 2020 11,100,000 12,250,000 14,650,000 15,000,000 260,000 295,000 300,000 310,000 22,000 37,000 36,000 40,000 2021 The collections from customers during 2021 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. 1. What amount should be reported as doubtful accounts expense for 2021? a. 310,000 b. 300,000 c. 222,000 d. 378,000 2. What amount should be reported as allowance for doubtful accounts on December 31, 2021? a. 110,000 b. 378,000 c. 300,000 d. 478,000 3. What amount should be reported as net realizable value of accounts receivable on December 31, 2021? a. 2,650,000 b. 2,690,000 c. 2,760,000 d. 2,800,000

On January 1, 2021, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit sales Writeoffs Recoveries 2018 2019 2020 11,100,000 12,250,000 14,650,000 15,000,000 260,000 295,000 300,000 310,000 22,000 37,000 36,000 40,000 2021 The collections from customers during 2021 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. 1. What amount should be reported as doubtful accounts expense for 2021? a. 310,000 b. 300,000 c. 222,000 d. 378,000 2. What amount should be reported as allowance for doubtful accounts on December 31, 2021? a. 110,000 b. 378,000 c. 300,000 d. 478,000 3. What amount should be reported as net realizable value of accounts receivable on December 31, 2021? a. 2,650,000 b. 2,690,000 c. 2,760,000 d. 2,800,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Kindly answer question 2 and 3 please.

Problem 5-21 (PHILCPA Adapted) On January 1, 2021, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit sales Writeoffs Recoveries 11,100,000 12,250,000 14,650,000 260,000 295,000 300,000 310,000 22,000 37,000 36,000 40,000 2018 2019 2020 2021 15,000,000 The collections from customers during 2021 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. 1. What amount should be reported as doubtful accounts expense for 2021? a. 310,000 b. 300,000 c. 222,000 d. 378,000 2. What amount should be reported as allowance for doubtful accounts on December 31, 2021? a. 110,000 b. 378,000 c. 300,000 d. 478,000 3. What amount should be reported as net realizable value of accounts receivable on December 31, 2021? a. 2,650,000 b. 2,690,000 c. 2,760,000 d. 2,800,000
Transcribed Image Text:Problem 5-21 (PHILCPA Adapted) On January 1, 2021, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit sales Writeoffs Recoveries 11,100,000 12,250,000 14,650,000 260,000 295,000 300,000 310,000 22,000 37,000 36,000 40,000 2018 2019 2020 2021 15,000,000 The collections from customers during 2021 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. 1. What amount should be reported as doubtful accounts expense for 2021? a. 310,000 b. 300,000 c. 222,000 d. 378,000 2. What amount should be reported as allowance for doubtful accounts on December 31, 2021? a. 110,000 b. 378,000 c. 300,000 d. 478,000 3. What amount should be reported as net realizable value of accounts receivable on December 31, 2021? a. 2,650,000 b. 2,690,000 c. 2,760,000 d. 2,800,000
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS