The following accounts are available from the unadjusted trial balance of the company at December 31, 2021: Accounts Receivable – P10,000,000 debit; Allowance for doubtful accounts – P80,000 debit; Net credit sales – P40,000,000 credit. The company estimates that 3% of the gross accounts receivable will become uncollectible. After the adjustment at December 31, 2021, the allowance for doubtful accounts should have a credit balance of how much?

The following accounts are available from the unadjusted trial balance of the company at December 31, 2021: Accounts Receivable – P10,000,000 debit; Allowance for doubtful accounts – P80,000 debit; Net credit sales – P40,000,000 credit. The company estimates that 3% of the gross accounts receivable will become uncollectible. After the adjustment at December 31, 2021, the allowance for doubtful accounts should have a credit balance of how much?

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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The following accounts are available from the unadjusted trial balance of the company at December 31, 2021: Accounts Receivable – P10,000,000 debit; Allowance for doubtful accounts – P80,000 debit; Net credit sales – P40,000,000 credit. The company estimates that 3% of the gross accounts receivable will become uncollectible. After the adjustment at December 31, 2021, the allowance for doubtful accounts should have a credit balance of how much?
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