SM Company prepared an aging of its accounts receivable at December 31, 2021 and determined that the estimated uncollectibles on that date was P74,300. During 2021, some customers’ accounts were written off. Additional information is available as follows: Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000 Uncollectible accounts expense reported in the statement of comprehensive income - P18,000 Accounts Receivable, Dec. 31, 2021 - P607,500 Recovery during 2021 of accounts previously written off - P12,000 How much were the accounts written off during 2021
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
SM Company prepared an aging of its
Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000
Uncollectible accounts expense reported in the statement of comprehensive income - P18,000
Accounts Receivable, Dec. 31, 2021 - P607,500
Recovery during 2021 of accounts previously written off - P12,000
How much were the accounts written off during 2021?
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