Tauton University is a leading educational institution with students population of more than 50,000. Tauton continuously maintains good quality education and a roster of qualified instructors. As a result, Tauton continuously produces top graduates at several field. As at December 31, 2021, Tauton has an outstanding receivable balance of P50,000,000 broken down into: 0 – 60 days outstanding, P30,000,000; 61 – 120 days outstanding, P15,000,000 and over 120 days outstanding, 5,000,000. Estimated uncollectible for these accounts is 2%, 4% and 10% respectively. Tauton wrote off P700,000 of its receivables during the year and recovered P200,000 from accounts previously written off in prior years. As at December 31, 2020, Tauton has an allowance for uncollectible accounts of P800,000. Based on the aging analysis, what should Tauton report as an allowance for doubtful accounts as at December 31, 2021? a. 2,400,000 b.2,200,000 c.1,700,000 d.1,100,000
Tauton University is a leading educational institution with students population of more than 50,000. Tauton continuously maintains good quality education and a roster of qualified instructors. As a result, Tauton continuously produces top graduates at several field. As at December 31, 2021, Tauton has an outstanding receivable balance of P50,000,000 broken down into: 0 – 60 days outstanding, P30,000,000; 61 – 120 days outstanding, P15,000,000 and over 120 days outstanding, 5,000,000. Estimated uncollectible for these accounts is 2%, 4% and 10% respectively. Tauton wrote off P700,000 of its receivables during the year and recovered P200,000 from accounts previously written off in prior years. As at December 31, 2020, Tauton has an allowance for uncollectible accounts of P800,000. Based on the aging analysis, what should Tauton report as an allowance for doubtful accounts as at December 31, 2021? a. 2,400,000 b.2,200,000 c.1,700,000 d.1,100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tauton University is a leading educational institution with students population of more than 50,000. Tauton continuously maintains good quality education and a roster of qualified instructors. As a result, Tauton continuously produces top graduates at several field. As at December 31, 2021, Tauton has an outstanding receivable balance of P50,000,000 broken down into: 0 – 60 days outstanding, P30,000,000; 61 – 120 days outstanding, P15,000,000 and over 120 days outstanding, 5,000,000. Estimated uncollectible for these accounts is 2%, 4% and 10% respectively. Tauton wrote off P700,000 of its receivables during the year and recovered P200,000 from accounts previously written off in prior years. As at December 31, 2020, Tauton has an allowance for uncollectible accounts of P800,000. Based on the aging analysis, what should Tauton report as an allowance for doubtful accounts as at December 31, 2021?
a. 2,400,000
b.2,200,000
c.1,700,000
d.1,100,000
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