Warriors Company prepared an aging of its accounts receivable at December 31, 2023 and determined that the estimated uncollectible on that date was P85,200. During 2023, some customers' accounts were written off. Additional information is available as follows: Allowance for Bad Debts, December 31, 2022 P 63,000 Bad debts expense reported in profit or loss 18,000 Accounts Receivable, December 31, 2023 607,500 Uncollectible accounts recovery during 2023 12,000 Question: 21. How much were the accounts written off during 2023? A. P6,000 B. P7,800 C. P18,000 D. P22,200
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.
Warriors Company prepared an aging of its
Additional information is available as follows:
Allowance for
Bad debts expense reported in profit or loss 18,000
Accounts Receivable, December 31, 2023 607,500
Uncollectible accounts recovery during 2023 12,000
Question:
21. How much were the accounts written off during 2023?
A. P6,000
B. P7,800
C. P18,000
D. P22,200
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
