An entity provided the following information for the current year: Accounts receivable – January 1 P2,000,000 Credit sales 10,000,000 Collection from customers, excluding recovery of accounts written off 8,000,000 Accounts written off as worthless 100,000 Sales return 500,000 Recovery of accounts written off 50,000 Estimated future sales returns on December 31 150,000 Estimated uncollectible
An entity provided the following information for the current year: Accounts receivable – January 1 P2,000,000 Credit sales 10,000,000 Collection from customers, excluding recovery of accounts written off 8,000,000 Accounts written off as worthless 100,000 Sales return 500,000 Recovery of accounts written off 50,000 Estimated future sales returns on December 31 150,000 Estimated uncollectible
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 26E
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An entity provided the following information for the current year:
Accounts receivable – January 1 | P2,000,000 |
Credit sales | 10,000,000 |
Collection from customers, excluding recovery of accounts written off | 8,000,000 |
Accounts written off as worthless | 100,000 |
Sales return | 500,000 |
Recovery of accounts written off | 50,000 |
Estimated future sales returns on December 31 | 150,000 |
Estimated uncollectible accounts on December 31 per aging | 300,000 |
What is the “amortized cost” of accounts receivable on December 31?
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