The December 31, 2022 statement of financial position of Xu Company showed Accounts Receivable balance of P350,000 and Allowance for Bad Debts of P50,000. Following is a summary of accounts receivable transactions recorded by the Company in 2023: Total sales during the year 4,360,000 1,890,000 Total cash sales Total collections on accounts during the year* Accounts written of as uncollectible Recoveries of accounts written off in the previous years 0-30 days 31-60 days 61 to 90 days Over 90 days *This includes collections from accounts previously written off. On December 31, 2023, an aging of accounts receivable indicated the following: Age Group 50% 27% 2,300,000 % of Total Outstanding Probability of Collection Receivables 17% 15,000 6% 30,000 97% 88% 65% 55%

The December 31, 2022 statement of financial position of Xu Company showed Accounts Receivable balance of P350,000 and Allowance for Bad Debts of P50,000. Following is a summary of accounts receivable transactions recorded by the Company in 2023: Total sales during the year 4,360,000 1,890,000 Total cash sales Total collections on accounts during the year* Accounts written of as uncollectible Recoveries of accounts written off in the previous years 0-30 days 31-60 days 61 to 90 days Over 90 days *This includes collections from accounts previously written off. On December 31, 2023, an aging of accounts receivable indicated the following: Age Group 50% 27% 2,300,000 % of Total Outstanding Probability of Collection Receivables 17% 15,000 6% 30,000 97% 88% 65% 55%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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