What is the doubtful accounts expense for 2011?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem 25 

From inception of operations to December 31, 2021, Edulsa Corporation provided for  uncollectible accounts receivable under the allowance method. Provisions were made monthly  at 2% of credit sales; bad debts written off were charged to the allowance account; recoveries  of bad debts previously written off were credited to the allowance account and no year-end  adjustments to the allowance account were made. Edulsa Corporation’s usual credit terms are  net 30 days.

The balance in the allowance for doubtful accounts was P65,000 at January 1, 2021. During  2021, credit sales totaled P4,500,000, interim provisions for doubtful accounts were made at  2% of credit sales, P45,000 of bad debts were written off and recoveries of accounts previously  written off amounted of P7,500. Edulsa Corporation installed a computer facility in November  2021 and an aging of accounts receivable was prepared for the first time as of December 31,  2021. A summary of the aging is as follows: 

Classification 

Percentage of  

(By month of sale) Amount November to  

uncollectibility 

December P 570,000 2% 

July to October 300,000 10% 

January to June 200,000 25%

Prior to January 1,  

2021 65,000 75%

Based on the review of collectibility of the account balances in the over “Prior to January 1,  2021” category, additional receivables totaling P30,000 was written off as of December 31,  2021. Effective with the year ended December 31, 2021, Edulsa Corporation adopted a new  accounting method for estimating the allowance for doubtful accounts at the amount  indicated by the year end aging analysis of accounts receivable.  

  1. What is the doubtful accounts expense for 2011?  
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