RIGgy Company provided you wth the unadjusted selected accounts on December 31, 200E. P 850,000 Sales Less: Sales renurns Net Sales 50.000 P 800.000 Accounts Receivable Less Allow for bad debts Net Realizable value P 74,000 12,000 2 62,000 Beginning inventory Ending inventory P45,000 60,000 Freight in Freight out 12.000 20,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 18
Riggy Company provided you with the unadjusted selected accounts on December 31, 200E.
P 850,000
50.000
P S00.000
Sales
Less: Sales renurns
Net Sales
P 74,000
12,000
P 62,000
Accounts Receivable
Less: Allow, for bad debts
Net Realazable value
Beginning inventory
Ending inventory
P45,000
60,000
Freight in
Freight out
12,000
20,000
If bad debts are estimated to be 2% of Sales, how much would be debited to bad debts?
P4,000
P 17,000
P 16,000
P5,000
Transcribed Image Text:Question 18 Riggy Company provided you with the unadjusted selected accounts on December 31, 200E. P 850,000 50.000 P S00.000 Sales Less: Sales renurns Net Sales P 74,000 12,000 P 62,000 Accounts Receivable Less: Allow, for bad debts Net Realazable value Beginning inventory Ending inventory P45,000 60,000 Freight in Freight out 12,000 20,000 If bad debts are estimated to be 2% of Sales, how much would be debited to bad debts? P4,000 P 17,000 P 16,000 P5,000
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