Tara Company provided the following information pertaining to accounts receivable at year-end: Days outstanding Estimated Атount Estimated uncollectible. 0 - 60 1,200,000 900,000 1,000,000 1% 2% 60,000 61 120 Over 120 3,100,000 During the current year, the entity wrote off P70,000 in accounts receivable and recovered P40,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P100,000. Under the aging method, what amount of allowance for uncollectible accounts should be reported at year-end?
Tara Company provided the following information pertaining to accounts receivable at year-end: Days outstanding Estimated Атount Estimated uncollectible. 0 - 60 1,200,000 900,000 1,000,000 1% 2% 60,000 61 120 Over 120 3,100,000 During the current year, the entity wrote off P70,000 in accounts receivable and recovered P40,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P100,000. Under the aging method, what amount of allowance for uncollectible accounts should be reported at year-end?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Tara Company provided the following information pertaining to accounts
receivable at year-end:
Days
outstanding
0 - 60
61
Estimated
Атount
Estimated
uncollectible.
1,200,000
900,000
1,000,000
1%
2%
60,000
120
Over 120
3,100,000
During the current year, the entity wrote off P70,000 in accounts
receivable and recovered P40,000 that had been written off in prior
years.
At the beginning of current year, the allowance for uncollectible
accounts was P100,000.
Under the aging method, what amount of allowance for uncollectible
accounts should be reported at year-end?
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