The accounts receivable subsidiary ledger of Olarita Corporation shows the following information: Customer 12/31 Account balance Invoice Date Amount One, Inc. P140,720 12/06 11/29 09/02 08/20 12/08 10/25 11/17 10/09 12/12 12/02 09/12 P56,000 84,720 48,000 35,680 80,000 42,400 92,560 88,000 76,800 49,600 69,600 P723,360 Two Co. 83,680 Three Corp. 122,400 Four Co. 180,560 Five Co. 126,400 Six, Inc. 69,600 Total P723,360 The estimated bad debt rates below are based on the Corporation's receivable collection experience. Age of accounts 0 – 30 days 31 – 60 days 61 – 90 days 91 – 120 days Over 120 days Rate 1% 1.5% 3% 10% 50%
The accounts receivable subsidiary ledger of Olarita Corporation shows the following information: Customer 12/31 Account balance Invoice Date Amount One, Inc. P140,720 12/06 11/29 09/02 08/20 12/08 10/25 11/17 10/09 12/12 12/02 09/12 P56,000 84,720 48,000 35,680 80,000 42,400 92,560 88,000 76,800 49,600 69,600 P723,360 Two Co. 83,680 Three Corp. 122,400 Four Co. 180,560 Five Co. 126,400 Six, Inc. 69,600 Total P723,360 The estimated bad debt rates below are based on the Corporation's receivable collection experience. Age of accounts 0 – 30 days 31 – 60 days 61 – 90 days 91 – 120 days Over 120 days Rate 1% 1.5% 3% 10% 50%
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 12SPA: SCHEDULE OF ACCOUNTS RECEIVABLE Based on the information provided in Problem 10-11A, prepare a...
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Transcribed Image Text:The accounts receivable subsidiary ledger of Olarita Corporation shows the following
information:
Customer
12/31 Account balance
Invoice
Date
Amount
12/06
11/29
09/02
One, Inc.
P56,000
84,720
48,000
P140,720
Two Co.
83,680
08/20
12/08
35,680
80,000
42,400
92,560
88,000
76,800
49,600
69,600
P723,360
Three Corp.
122,400
10/25
Four Co.
180,560
11/17
10/09
Five Co.
126,400
12/12
12/02
Six, Inc.
69,600
P723,360
09/12
Total
The estimated bad debt rates below are based on the Corporation's receivable collection
experience.
Age of accounts
0 - 30 days
31 – 60 days
Rate
1%
1.5%
3%
61 – 90 days
91 – 120 days
Over 120 days
10%
50%
Transcribed Image Text:The Allowance for Doubtful Accounts had a credit balance of P14,000 on December 31, 2020,
before adjustment.
9. The adjusting journal entry to adjust the allowance for doubtful accounts as of
December 31, 2020 will include a debit to doubtful accounts expense of
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