Zyrah Co. has the following data relating to its accounts receivable durig the current year: Categories No. of Days Balance %collectible 0-30 days ₱500,000 98% 31-60 days 600,000 97% 61-90 days 750,000 95% Over 91 days 400,000 (₱100,000 definitely uncollectible, balance is 90% collectible) The beginning balance of the allowance for doubtful accounts is ₱40,000. During the year, Zyrah write off ₱23,000 receivables and recovered ₱12,000 of accounts previously written off in prior years. Based on the above data, answer the following: 1. How much is doubtful accounts expense during the current year? a. ₱166,500 c. 123,000 b. ₱95,500 d. 111,000 2. How much is the net realizable value of the accounts receivable at the end of the current year? a. ₱2,054,500 c. ₱1,983,500 b. ₱2,150,000 d. ₱2,027,000
Zyrah Co. has the following data relating to its accounts receivable durig the current year: Categories No. of Days Balance %collectible 0-30 days ₱500,000 98% 31-60 days 600,000 97% 61-90 days 750,000 95% Over 91 days 400,000 (₱100,000 definitely uncollectible, balance is 90% collectible) The beginning balance of the allowance for doubtful accounts is ₱40,000. During the year, Zyrah write off ₱23,000 receivables and recovered ₱12,000 of accounts previously written off in prior years. Based on the above data, answer the following: 1. How much is doubtful accounts expense during the current year? a. ₱166,500 c. 123,000 b. ₱95,500 d. 111,000 2. How much is the net realizable value of the accounts receivable at the end of the current year? a. ₱2,054,500 c. ₱1,983,500 b. ₱2,150,000 d. ₱2,027,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Zyrah Co. has the following data relating to its accounts receivable durig the current year:
Categories
No. of Days Balance %collectible
0-30 days ₱500,000 98%
31-60 days 600,000 97%
61-90 days 750,000 95%
Over 91 days 400,000 (₱100,000 definitely uncollectible, balance is 90% collectible)
The beginning balance of the allowance for doubtful accounts is ₱40,000. During the year, Zyrah write off ₱23,000 receivables and recovered ₱12,000 of accounts previously written off in prior years.
Based on the above data, answer the following:
1. How much is doubtful accounts expense during the current year?
a. ₱166,500 c. 123,000
b. ₱95,500 d. 111,000
2. How much is the net realizable value of the accounts receivable at the end of the current year?
a. ₱2,054,500 c. ₱1,983,500
b. ₱2,150,000 d. ₱2,027,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education