Asian Boss Corp. has the following data relating to accounts receivable for the year ended December 31, 2020: 500,000 Accounts receivable, January 1, 2020 20,000 Allowance for doubtful accounts, January 1, 2020 Sales during the year, all on account, terms 5/10, 3/15, n/60 2,400,000 2,500,000 Cash received from customers during the year 10,000 Accounts written off during the year An analysis of cash received from customers during the year revealed that P1,330,000 was received from customers availing the 10-day discount period, P388,000 from customers availing the 15-day discount period, P2,400 represented recovery of accounts written-off, and the balance was received from customers paying beyond the discount period. The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the outstanding accounts receivable at year end. The required percentage at December 31, 2020 is 150% of the rate used on December 31, 2019. The doubtful accounts expense for 2020 is P8,064 OP7,824 OP5,984 DG 234

Asian Boss Corp. has the following data relating to accounts receivable for the year ended December 31, 2020: 500,000 Accounts receivable, January 1, 2020 20,000 Allowance for doubtful accounts, January 1, 2020 Sales during the year, all on account, terms 5/10, 3/15, n/60 2,400,000 2,500,000 Cash received from customers during the year 10,000 Accounts written off during the year An analysis of cash received from customers during the year revealed that P1,330,000 was received from customers availing the 10-day discount period, P388,000 from customers availing the 15-day discount period, P2,400 represented recovery of accounts written-off, and the balance was received from customers paying beyond the discount period. The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the outstanding accounts receivable at year end. The required percentage at December 31, 2020 is 150% of the rate used on December 31, 2019. The doubtful accounts expense for 2020 is P8,064 OP7,824 OP5,984 DG 234

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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