The following information pertains to Polo Company’s accounts receivable at December 31, 2018. Days Outstanding Amount % Uncollectible 0-60 P 1,200,000 1% 61-120 900,000 2% Over 120 1,000,000 6% Polo Company’s Allowance for Bad Debts has a P 10,000 debit balance before adjustment on December 31, 2018. How much is the Bad Debts expense for 2018? A. P30,000 B. P100,000 C. P80,000 D. P90,000 35. Using data in number 34, how much is the Allowance for bad Debts to be shown in the Statement of Financial Position as of December 31, 2018? A. P100,000 B. P90,000 C. P120,000 D. P170,000
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
The following information pertains to Polo Company’s
Days Outstanding Amount % Uncollectible
0-60 P 1,200,000 1%
61-120 900,000 2%
Over 120 1,000,000 6%
Polo Company’s Allowance for
35. Using data in number 34, how much is the Allowance for bad Debts to be shown in the
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33. Rent Income account has a credit balance of P 240,000 composed of the following:
Rental for three months ending March 31, 2018, P 45,000
A credit of P 195,000 representing advance rental payment for one year beginning April 1, 2018
The Dec. 31, 2018 adjusting entry will require a debit to Rent Income and a credit to Unearned Rent of
A. P45,000
B. P48,750
C. P191,250
D. P195,000
Estima Ti Excel +
34. The following information pertains to Polo Company's accounts receivable at December 31, 2018.
Days Outstanding
Amount
% Uncollectible
0-60
P 1,200,000
1%
2%
61-120
Over 120
900,000
1,000,000
6%
Polo Company's Allowance for Bad Debts has a P 10,000 debit balance before adjustment on December
31, 2018. How much is the Bad Debts expense for 2018?
A. P30,000
C. P80,000
B. P100,000
D. P90,000
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35. Using data in number 34, how much is the Allowance for bad Debts to be shown in the Statement of
Financial Position
This study source was downloadn as of December 31, 2018?
https://www.coursehero.com/file/124517039/Exercises-Short-Problemspdf/
Of the P1,200 Insurance expense account, P450 is still unexpired
Fees earned but not yet billed as of year end, P27,840
Of the P9,850 Unearned Income account, P2,600 has already been earned
Depreciation amounting to P8,440
After the necessary adjustments had been made, how much is the adjusted net income?
A. P340,720
B. P342,220
C. P 336,720
D. P 341,920
2- CAF
A. P100,000
B. P90,000
C. P120,000
D. P170,000
36. Before the year end adjustments were made, Victoria Company has a net income amount of P319,470.
Adjustments are necessary for the following items:
37. In preparing its 2018 adjusting journal entry, the bookkeeper omitted to adjust prepaid insurance for the
amount of insurance expired for the period. As a result
Net income is understated capital is understated and asset is understated
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