Soriano Corp.’s accounts receivable subsidiary ledger shows the following information: Customer Account Balance Invoice December 31, 2024 Date Amount Kaya, Inc. 35,180 12/06/24 14,000 11/29/24 21,180 Nyo Co. 20,920 09/27/24 12,000 08/20/24 8,920 Yan Corp. 30,600 12/08/24 20,000 10/25/24 10,600 Kayo Co. 45,140 11/17/24 23,140 10/09/24 22,000 Pa, Inc. 31,600 12/12/24 19,200 12/02/24 12,400 Ba, Corp. 17,400 09/12/24 17,400 The estimated bad debts rates below are based on Soriano Corp.’s receivable collection experience. Age of Accounts Rate 0 to 30 days 1% 31 to 60 days 1.5% 61 to 90 days 3% 91 to 120 days 10% Over 120 days 50% The allowance for bad debts had a debit balance of P 5,500 on December 31, 2024, before adjustment. Based on the above and the results of your audit, answer the following: The accounts receivable under “91 to 120 days” category should
Soriano Corp.’s
|
Customer |
Account Balance |
Invoice |
|
|
December 31, 2024 |
Date |
Amount |
|
|
Kaya, Inc. |
35,180 |
12/06/24 |
14,000 |
|
11/29/24 |
21,180 |
||
|
Nyo Co. |
20,920 |
09/27/24 |
12,000 |
|
08/20/24 |
8,920 |
||
|
Yan Corp. |
30,600 |
12/08/24 |
20,000 |
|
10/25/24 |
10,600 |
||
|
Kayo Co. |
45,140 |
11/17/24 |
23,140 |
|
10/09/24 |
22,000 |
||
|
Pa, Inc. |
31,600 |
12/12/24 |
19,200 |
|
12/02/24 |
12,400 |
||
|
Ba, Corp. |
17,400 |
09/12/24 |
17,400 |
The estimated
|
Age of Accounts |
Rate |
|
0 to 30 days |
1% |
|
31 to 60 days |
1.5% |
|
61 to 90 days |
3% |
|
91 to 120 days |
10% |
|
Over 120 days |
50% |
The allowance for bad debts had a debit balance of P 5,500 on December 31, 2024, before adjustment.
Based on the above and the results of your audit, answer the following:
The accounts receivable under “91 to 120 days” category should be
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