Question 18Riggy Company provided you with the unadjusted selected accounts on December 31, 200E.P 850,00050.000P S00.000SalesLess: Sales renurnsNet SalesP 74,00012,000P 62,000Accounts ReceivableLess: Allow, for bad debtsNet Realazable valueBeginning inventoryEnding inventoryP45,00060,000Freight inFreight out12,00020,000If bad debts are estimated to be 2% of Sales, how much would be debited to bad debts?P4,000P 17,000P 16,000P5,000

Formula: Bad debts amount = Net Sales amount x Bad debts %

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

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

Section: Chapter Questions

Problem 1Q

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