Orellana Corp. has the following data relating to accounts receivable for the year ended December 31, 2020: Accounts receivable, January 1, 2020 Allowance for doubtful accounts, January 1, 2020 Sales during the year, all on account, terms 2/10, 1/15, n/60 P480,000 19,200 2,400,000 Cash received from customers during the year Accounts written off during the year 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. The allowance for doubtful accounts is adjusted so that it represents certain percentage of the outstanding accounts receivable at year end. The required percentage at December 31, 2020 is 125% of the rate used on December 31, 2019. 2 8. The doubtful accounts expense for 2020 is

Orellana Corp. has the following data relating to accounts receivable for the year ended December 31, 2020: Accounts receivable, January 1, 2020 Allowance for doubtful accounts, January 1, 2020 Sales during the year, all on account, terms 2/10, 1/15, n/60 P480,000 19,200 2,400,000 Cash received from customers during the year Accounts written off during the year 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. The allowance for doubtful accounts is adjusted so that it represents certain percentage of the outstanding accounts receivable at year end. The required percentage at December 31, 2020 is 125% of the rate used on December 31, 2019. 2 8. The doubtful accounts expense for 2020 is

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6PB: Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable....

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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

100%

The doubtful accounts expense for 2020 is?

Please include solutions. Thank you!

Orellana Corp. has the following data relating to accounts receivable for the year ended
December 31, 2020:
P480,000
19,200
Accounts receivable, January 1, 2020
Allowance for doubtful accounts, January 1, 2020
Sales during the year, all on account,
terms 2/10, 1/15, n/60
2,400,000
Cash received from customers during the year
Accounts written off during the year
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. The allowance for
doubtful accounts is adjusted so that it represents certain percentage of the outstanding
accounts receivable at year end. The required percentage at December 31, 2020 is 125% of the
rate used on December 31, 2019. 2
8. The doubtful accounts expense for 2020 is

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