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The net realizable value of the company’s accounts receivable on December 31, 2016, should be A. P1,518,887 C. P1,528,150 B. P1,612,650 D. P1,603,358

The net realizable value of the company’s accounts receivable on December 31, 2016, should be A. P1,518,887 C. P1,528,150 B. P1,612,650 D. P1,603,358

FINANCIAL ACCOUNTING
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 net realizable value of the company’s accounts receivable on December 31, 2016, should be
A. P1,518,887
C. P1,528,150
B. P1,612,650
D. P1,603,358
NINE, INC. cstimates its bad debt losses by aging its accounts reccivable. The aging schedule of accounts reccivable at December Age of Accounts 0 - 30 days 31 - 60 days 61 - 90 days 91 - 120 days Over 120 days 31, 2016, is Amount presented below: P 843,200 461,000 192,400 76,650 39,400 Ninc Inc.'s uncollectible accounts experience for the past 5 ycars are summarized in the following schedule: 31 - 60 91 - 120 Days 0- 30 61 - 90 Davs A/R Balance Dec 31 P 1,312,500 999,999 Over 120 Year Daus Days Days 2015 0.3% 1.8% 12% 38% 65% 2014 0.5% 1.6% 11% 41% 70% 1.5% 1.7% 2.0% 2013 465,000 816,000 1,243,667 0.2% 9% 50% 69% 2012 0.4% 10.2% 47% 81% 2011 0.9% 9.7% 33% 95% The balance of the allowance for bad debts account at December 31, 2016, (before adjustment) is P84,500.
Transcribed Image Text:NINE, INC. cstimates its bad debt losses by aging its accounts reccivable. The aging schedule of accounts reccivable at December Age of Accounts 0 - 30 days 31 - 60 days 61 - 90 days 91 - 120 days Over 120 days 31, 2016, is Amount presented below: P 843,200 461,000 192,400 76,650 39,400 Ninc Inc.'s uncollectible accounts experience for the past 5 ycars are summarized in the following schedule: 31 - 60 91 - 120 Days 0- 30 61 - 90 Davs A/R Balance Dec 31 P 1,312,500 999,999 Over 120 Year Daus Days Days 2015 0.3% 1.8% 12% 38% 65% 2014 0.5% 1.6% 11% 41% 70% 1.5% 1.7% 2.0% 2013 465,000 816,000 1,243,667 0.2% 9% 50% 69% 2012 0.4% 10.2% 47% 81% 2011 0.9% 9.7% 33% 95% The balance of the allowance for bad debts account at December 31, 2016, (before adjustment) is P84,500.
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