Dyeing Company Inc.’s policy on doubtful accounts is estimated to be 8% of collections from sales on accounts. Accounts Receivable ending was recorded at P125,000 and beginning balance was P100,000.00. Sales amounted to P500,000 of which 50% was cash.. Doubtful accounts expense should be recorded as:
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
1. Dyeing Company Inc.’s policy on doubtful accounts is estimated to be 8% of collections from sales on accounts.
2. The existing allowance for doubtful accounts is P20,000. If the required allowance is 2 pct of the accounts and the balance is P1,480,000 net of unadjusted allowance, the
3. Yankees, Inc. has 100,000 shares of P10 par value ordinary shares and 50,000 shares of P10 par value, 6%, cumulative, participating
4. The
Ordinary shares P10 par authorized 1,000,000 shares, issue and Outstanding 900,000) P9,000,000
Share premium 2,700,000
On Jan 2, 2020 K Pop purchased and retired 100,000 shares of the stocks for P1,800,000. Immediately after retirement of these 100,000 shares, balances of the share premium and retained earnings account respectively should be :
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
