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
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
How much was the adjusted balance of Sasha Novikov’s allowance for bad debts on December 31, 2022?
Please I hope you answer..
Transcribed Image Text:outstanding for 5 months, 12.5% were outstanding for 6 months, and the remaining were outstanding for more than 6
months.
Transcribed Image Text: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
Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.
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