The related data of Carolina Company: Sales for the year P2,875,000 Cost of merchandise inventory sold 40% of sales Sales returns and allowances related to credit sales P57,500 Collection related to credit sales P1,955,000 Worthless accounts (Accounts written-off) P80,000 Recovered accounts P5,000 Other information: Accounts receivable, beginning P500,000 Allowance for doubtful accounts, beginning P50,000 The entity's sales matrix comprises 20% cash sales and 80% credit sales. Requirements: How much is the Accounts receivable, ending balance ? How much is the net realizable value, if doubtful accounts are 2% of the net sales? What are the related journals, if doubtful accounts are 2% of the net sales)?
The related data of Carolina Company:
Sales for the year P2,875,000
Cost of merchandise inventory sold 40% of sales
Sales returns and allowances related to credit sales P57,500
Collection related to credit sales P1,955,000
Worthless accounts (Accounts written-off) P80,000
Recovered accounts P5,000
Other information:
Allowance for doubtful accounts, beginning P50,000
The entity's sales matrix comprises 20% cash sales and 80% credit sales.
Requirements:
- How much is the Accounts receivable, ending balance ?
- How much is the net realizable value, if doubtful accounts are 2% of the net sales?
- What are the related journals, if doubtful accounts are 2% of the net sales)?
- How much is the net realizable value, if doubtful accounts are 8% of the Accounts receivable, beginning ?
- What are the related journals, if doubtful accounts are 8% of the Accounts receivable, beginning?
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