FDN Company reported Accounts Receivable of P10,000,000 on December 31, 2021. Allowance for Doubtful Accounts was P1,000,000 on January 1, 2021. The following information is provided pertaining to the company's aging analysis. Time outstanding Accounts receivable Percent uncollectible Under 90 days P7,200,000 3% 91 - 180 days 1,800,000 8% 181 - 360 days 1,000,000 60% How much should be reported as Allowance for Doubtful Accounts as of December 31, 2021?

FDN Company reported Accounts Receivable of P10,000,000 on December 31, 2021. Allowance for Doubtful Accounts was P1,000,000 on January 1, 2021. The following information is provided pertaining to the company's aging analysis. Time outstanding Accounts receivable Percent uncollectible Under 90 days P7,200,000 3% 91 - 180 days 1,800,000 8% 181 - 360 days 1,000,000 60% How much should be reported as Allowance for Doubtful Accounts as of December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

None
An analysis and aging of Marigold Corp.’s accounts receivable at December 31, 2020, disclosed the following: Amounts estimated to be uncollectible $156,000 Accounts receivable 1,810,000 Allowance for doubtful accounts (per books) 140,000 What is the net realizable value of Marigold Corp.’s receivables at December 31, 2020? Net realizable val
Apple Company determined that the net realizable value of its accounts receivable at December 31, 2020 based on aging of accounts receivable was P3,160,000. Additional information for 2020 is as follows: Allowance for doubtful accounts - Jan. 1 500,000 Accounts receivable - December 31 4,800,000 Doubtful accounts written off during the year 320,000 Doubtful accounts recovered during the year 70,000 What should be the doubtful accounts expense for 2020? 390,000 520,000 480,000 460,000
16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
Vishal
Bonita Company’s unadjusted trial balance at December 31, 2020, included the following accounts. Debit Credit Accounts receivable $55,000 Allowance for doubtful accounts 6,980 Net sales $1,217,400 Bonita Company estimates uncollectible accounts will be 8% of gross accounts receivable. Determine its bad debt expense for 2020. Bad debt expense for 2020
Please answer this question with brief solution. I need the answer ASAP thank you!
21. Ebasan Company estimates its doubtful accounts by aging its accounts receivable. The aging schedule of accounts receivable at December 31, 2020 is presented below: Age of Accounts 0-30 days 31-60 days Amount P1,264,800 691,500 61-90 days 288,600 114,975 91-120 days Over 120 days 59,100 Ebasan's uncollectible accounts experience for the past 5 years are summarized in the following schedule: Year 0-30 31-60 61-90 91-120 Over 120 2019 Receivable (Dec 31) P1,968,750 1,500,000 697,500 0.3% 1.8% 12% 38% 65% 2018 0.5% 1.6% 41% 70% 2017 1.5% 0% 50% 69% 0.2% 0.4% 2016 1,224,000 1,7% 10.2% 47% 81% 2015 1,865,500 0.9% 2.0% 9.7% 33% 95% The balance of the allowance for doubtful accounts at December 31, 2020 before adjustment is P126,751. The necessary adjusting journal entry to adjust the allowance for doubtful accounts as of Dec 31,2020 would include: A. A debit to retained earnings of P13,894, B. A debit to doubtful accounts expense P140,644. C. A credit to doubtful accounts expense…
16. Int
Daley Company prepared the following aging of receivables analysis at December 31. Total Days Past Due 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 575,000 $ 397,000 $ 91,000 $ 37,000 $ 19,000 $ 31,000 Percent uncollectible 2% 3% 6% 8% 11% Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,700 credit. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 debit. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Accounts Receivable x Percent Uncollectible (%) = Estimated…
The following information is available for Monty's Best Corporation about the age of its receivables at December 31, its year end: Number of days outstanding Accounts Receivable Estimated percentage uncollectible (a) 0-30 $410,000 3% Total Estimated Uncollectible Accounts $ tA 31-60 $250,000 5% 61-90 $210,000 10% Over 90 $90,000 Using the above aging schedule, determine the total estimated uncollectible accounts. 15%
S&R Company uses the aging of accounts receivable approach to estimate bad debt expense. On December 31, an analysis of accounts receivable revealed the following: Schedule of Accounts Receivable by Age December 31, 2022 Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollect 130,000 50,000 18,000 3,000 9,000 210,000 Not yet due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Required: (a) Calculate the amount of allowance for doubtful accounts that should be reported on the balance sheet at December 31, 2022. (b) Calculate the amount of bad debts expense that should be reported on the 2022 income statement, assuming that the balance of Allowance for Doubtful Accounts on January 1 was $46,000 (credit balance) and accounts receivable written off during the year totaled $49,000 (c) Present the appropriate general journal entry to record bad debts expense on December 31, 2022. (d) Show how accounts receivable will appear on the balance…