The following accounts are available from the unadjusted trial balance of the company at December 31, 2021: Accounts Receivable – P10,000,000 debit; Allowance for doubtful accounts – P80,000 debit; Net credit sales – P40,000,000 credit. The company estimates that 3% of the gross accounts receivable will become uncollectible. After the adjustment at December 31, 2021, the allowance for doubtful accounts should have a credit balance of how much?

The following accounts are available from the unadjusted trial balance of the company at December 31, 2021: Accounts Receivable – P10,000,000 debit; Allowance for doubtful accounts – P80,000 debit; Net credit sales – P40,000,000 credit. The company estimates that 3% of the gross accounts receivable will become uncollectible. After the adjustment at December 31, 2021, the allowance for doubtful accounts should have a credit balance of how much?

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 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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