3. The following information is available from the records of MANUEL Corp.: Accounts receivable, January 1 Sales - all on credit Sales returns and allowances Allowance for bad debts, January 1 Write-offs during the year Cash received from customers on current accounts 250,000 1,567,000 2,500 24,000 26,000 net of sales discount of P4,500 Recoveries of accounts written off in previous year 1,504,000 1,000 The balance of accounts receivable at December 31 i:
3. The following information is available from the records of MANUEL Corp.: Accounts receivable, January 1 Sales - all on credit Sales returns and allowances Allowance for bad debts, January 1 Write-offs during the year Cash received from customers on current accounts 250,000 1,567,000 2,500 24,000 26,000 net of sales discount of P4,500 Recoveries of accounts written off in previous year 1,504,000 1,000 The balance of accounts receivable at December 31 i:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. The following information is available from the records of MANUEL Corp.:
Accounts receivable, January 1
Sales - all on credit
Sales returns and allowances
Allowance for bad debts, January 1
Write-offs during the year
250,000
1,567,000
2,500
24,000
26,000
Cash received from customers on current accounts
net of sales discount of P4,500
Recoveries of accounts written off in previous year
1,504,000
1,000
The balance of accounts receivable at December 31 is:
Transcribed Image Text:5. ALIAH Company sells to wholesalers on terms of 5/15, net 30. ALIAH has no cash sale but 50% of customers
take advantage of the discount. AAA uses the gross method of recording sales. An analysis of trade receivables
at December 31, 2016 revealed the following:
Age
0 - 15 days
16 - 30 days
Over 30 days
Amount
15,000,000
3,000,000
2,000,000
On the December 31, 2016 statement of financial position, what amount should be reported as allowance for
Collectible
100%
95%
1,500,000
discounts?
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