Problems 1. For the year ended December 31, 2017, Casey Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/17 800,000 Provision for uncollectible accounts during 2017 (2% on credit sales of P20,000,000) 400,000 Uncollectible accounts written off, 11/30/17 300,000 Recovery of accounts considered worthless Estimated uncollectible accounts per aging, 12/31/17 100,000 1,150,000 After year-end adjustment, the uncollectible accounts expense for 2017 should be а. 300,000 b. 600,000 с. 150,000 d. 550,000

Problems 1. For the year ended December 31, 2017, Casey Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/17 800,000 Provision for uncollectible accounts during 2017 (2% on credit sales of P20,000,000) 400,000 Uncollectible accounts written off, 11/30/17 300,000 Recovery of accounts considered worthless Estimated uncollectible accounts per aging, 12/31/17 100,000 1,150,000 After year-end adjustment, the uncollectible accounts expense for 2017 should be а. 300,000 b. 600,000 с. 150,000 d. 550,000

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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16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
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