Question:What is the amount of bad debts expense in its December 31, 2022 Statement of Comprehensive income assuming the Dolor’s policy is to provide 5% of the outstanding balance of accounts receivable as uncollectible and beginning balance of allowance of P20,000? The details of the accounts receivable of Dolor Corporation as December 31, 2022 shows thefollowing:Beginning balanceP3,450,0002,800,000Sales on account made to customersCollection of accounts receivable during the year4,200,00090,000Accounts written off as uncollectibleThe following transactions were included in the recorded transactions during the year:a. Invoice dated December 28, 2022 for P350,000 was shipped on December 31, 2022 terms FOBdestination. The goods were recorded as sale on account and was received by Customer Binon January 3, 2023.b. Invoice dated and recorded on November 30, 2022 was erroneously priced at P32 per unit.There were 11,000 units of goods delivered FOB destination which were received on December10, 2021. The agreed price should be at P22 per unit only.

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Question: What is the amount of bad debts expense in its December 31, 2022 Statement of Comprehensive income assuming the Dolor’s policy is to provide 5% of the outstanding balance of accounts receivable as uncollectible and beginning balance of allowance of P20,000?

Question: What is the amount of bad debts expense in its December 31, 2022 Statement of Comprehensive income assuming the Dolor’s policy is to provide 5% of the outstanding balance of accounts receivable as uncollectible and beginning balance of allowance of P20,000?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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