Sasha Novikov had P7,250,000 for his beginning balance of accounts receivable for 2022. It is the company's policy to record bad debts at 5% up until the end of 2021. However, moving forward, the company moved to an aging policy based on the following table: Days outstanding Uncollectability rate 2% 30-60 days 61-120 days 3% >120 days 7.5% Sasha collected 85% from the previous year's accounts receivable. Sasha collected P4,856,250 in relation to the services rendered for the current year. Said amount was also 92.5% of total services rendered for the year. Of the total accounts receivable at year-end, 22.5% were outstanding for less than a month, 20% were outstanding for 1 month, 5% were outstanding for 2 months, another 5% were outstanding for 3 months, 15% were outstanding for 4 months, 5% were

Sasha Novikov had P7,250,000 for his beginning balance of accounts receivable for 2022. It is the company's policy to record bad debts at 5% up until the end of 2021. However, moving forward, the company moved to an aging policy based on the following table: Days outstanding Uncollectability rate 2% 30-60 days 61-120 days 3% >120 days 7.5% Sasha collected 85% from the previous year's accounts receivable. Sasha collected P4,856,250 in relation to the services rendered for the current year. Said amount was also 92.5% of total services rendered for the year. Of the total accounts receivable at year-end, 22.5% were outstanding for less than a month, 20% were outstanding for 1 month, 5% were outstanding for 2 months, another 5% were outstanding for 3 months, 15% were outstanding for 4 months, 5% were

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cool Corporation’s accounts payable at December 31, 2020 amounted to P5,400,000 before any necessary year-end adjustmentsrelating to the following transactions:➢ On December 28, 2020, Cool wrote and recorded checks to creditors totaling P2,000,000 causing an overdraft of P500,000 inCool’s bank account at December 31, 2020. The checks were mailed on January 11, 2021.➢ On December 29, 2020, Cool purchased and received goods for P750,000, terms 2/10, n/30. Cool records purchasesusing the net method. The invoice was recorded and paid on January 5, 2021.➢ Goods shipped FOB destination on December 21, 2020 from a vendor to Cool was received on January 3, 2021. The invoicecost was P325,000.At December 31, 2020, what amount should Cool report as total accounts payable?
21. During 2019, Company A had net credit sales of Php 600,000. Its Accounts Receivable and Allowance for Doubtful Accounts as of December 31, 2019 before adjustment are Php 100,000 and Php 2,000, respectively. The age of the receivables are as follow: Php 40,000: 0-60 days old; Php 60,000: over 60 days old. If the company uses Aging of Receivables, what should be the amount of Doubtful Accounts Expense to recognize if an allowance of 2% is granted to 0-60 days old receivables and 10% to over 60 days old receivables?
At the end of 2020, Monty Corp. has accounts receivable of $2.95 million and an allowance for doubtful accounts of $132,000. On January 16, 2021, Monty determined that its $24,400 receivable from Sandhill Co. will not be collected, and management has authorized its write off. On January 31, 2021, Monty received notification that the company will be receiving $0.20 for every $1.00 of accounts receivable relating to Carla Vista Co. The company had previously written off 100% of the amount due from Carla Vista ($56,000). (a) Prepare the journal entry for Monty Corp. to write off the Sandhill receivable and any journal entry necessary to reflect the notice regarding Carla Vista Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) To write off the Sandhill accounts: Account Titles and Explanation Debit Account Titles and Explanation Carla Vista Co.…
please quickly thanks !
Dog
Sunland Corporation had a 1/1/25 balance in the Allowance for Doubtful Accounts of $38500. During 2025, it wrote off $27600 of accounts and collected $7850 on accounts previously written off. The balance in Accounts Receivable was $735000 at 1/1 and $875000 at 12/31. At 12/31/25, Sunland estimates that 5% of accounts receivable will prove to be uncollectible. What is bad debt expense for 2025? O $43750. Ⓒ$32850. Ⓒ $5250. O $25000.
During 2024, its first year of operations, Platform Construction provides services on account of $140,000. By the end of 2024, cash collections on these accounts total $100,000. Platform estimates that 30% of the uncollected accounts will be uncollectible. In 2025, the company writes off uncollectible accounts of $10,800. Required: 1. Record the adjusting entry for uncollectible accounts on December 31, 2024.2-a. Record the write-off of accounts receivable in 2025.2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2025 (before adjustment in 2025).3-a. Assume the same facts as above but assume actual write-offs in 2025 were $16,200. Record the write-off of accounts receivable in 2025.3-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2025 (before adjustment in 2025).
During 2018, its first year of operations, Pave Construction provides services on account of $144,000. By the end of 2018, cash collections on these accounts total $102,000. Pave estimates that 20% of the uncollected accounts will be bad debts. Record the adjustment for uncollectible accounts on December 31, 2018
Hameed Books Store started the business of buying and selling text books on 1 January 2018. At the end of each of the next Three(3) years, his figures for debtors, before writing off any Bad debts, were as follows: 31 December 2018 RM30,000 31 December 2019 RM38,100 31 December 2020 RM4,750 Bad debts to be written off are as follows: 31 December 2018 RMO 31 December 2019 RM2,100 31 December 2020 RM750 The Allowance for Doubtful debts in each year is 5% of outstanding net debtors i.e. after writing off Bad debts. Required: (1) Prepare Hameed Books Store Bad debts expense account and Allowance for Doubtful debts account for financial year 2018, 2019 and 2020. (2) Prepare an extract of the Income Statement and Balance Sheet (under Current Asset section) and, showing the above transactions, for all Three(3) years of the accounting period.
Global Enterprises, Inc. signed a one-year $42,000 note payable at 8% inerest on April 1, 2025. If Global only adjusts it's accounts once a year at year end, how much interest expense was accrued on December 31, 2025?
On January 31, 2020, Allison company wrote off and uncollectible accounts of $8500. The company uses the allowance method for bad debts. The write off would cause total current assets to be? A decreased by $8,500, Increased by $8500 increase by $17,000 or will it remain the same amount?
Want help