From inception of operations, Comprehensive Company provided for uncollectible accounts expense under allowance method using the percentage of sales method The balance in the allowance for doubtful accounts was No year-end adjustments to the allowance account were mad. P1,000,000 on January 1, 2020. During the current year, credit sales totaled P20,000,000 interim provisions for doubtful accounts were made at 2% of credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written off amounted to P50,000. An aging of accounts receivable was made for the first time on December 31, 2020. Aging Balance Uncollectible 0 - 60 6,000,000 2,000,000 1,500,000 500,000 10% 61 - 180 181 - 360 Over 20% 30% 360 50% Based on the review of collectibility of the account balances in the "over 360 days" aging category, additional accounts totaling P100,000 are to be written off on December 31, 2020. Effective with the year ended December 31, 2020, the entity adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging of accounts receivable.
From inception of operations, Comprehensive Company provided for uncollectible accounts expense under allowance method using the percentage of sales method The balance in the allowance for doubtful accounts was No year-end adjustments to the allowance account were mad. P1,000,000 on January 1, 2020. During the current year, credit sales totaled P20,000,000 interim provisions for doubtful accounts were made at 2% of credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written off amounted to P50,000. An aging of accounts receivable was made for the first time on December 31, 2020. Aging Balance Uncollectible 0 - 60 6,000,000 2,000,000 1,500,000 500,000 10% 61 - 180 181 - 360 Over 20% 30% 360 50% Based on the review of collectibility of the account balances in the "over 360 days" aging category, additional accounts totaling P100,000 are to be written off on December 31, 2020. Effective with the year ended December 31, 2020, the entity adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging of accounts receivable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pls answer the following. Show the steps with explanation. Thank you
Transcribed Image Text:What is the balance c
on December 31, 202
1.
1,100,000
a.
Problem 5-17 (AICPA Adapted)
From inception of operations, Comprehensive Compas
provided for uncollectible accounts expense under
allowance method using the percentage of sales method
b. 1,150,000
1,250,000
C.
2 What is the required
December 31, 2020?
No year-end adjustments to the allowance account were made
d. 1,200,000
The balance in the allowance for doubtful accounts wa.
P1,000,000 on January 1, 2020.
During the current year, credit sales totaled P20,000,000
interim provisions for doubtful accounts were made at 2% of
credit sales, bad debts of P200,000 were written off, and
recoveries of accounts previously written off amounted to
P50,000.
a. 1,650,000
b. 1,950,000
C. 1,700,000
d. 1,450,000
3. What amount should
expense for the curre
An aging of accounts receivable was made for the first time
on December 31, 2020.
a. 1,200,000
b. 1,650,000
900,000
d. 950,000
Aging
Balance
Uncollectible
60
61 - 180
6,000,000
2,000,000
1,500,000
500,000
C.
10%
181 - 360
20%
30%
50%
Over
360
Based on the review of collectibility of the account balances
in the "over 360 days" aging category, additional accounts
totaling P100,000 are to be written off on December 31, 2020.
4. What is the year-end
doubtful accounts on I
Effective with the year ended December 31, 2020, the entity
adopted a new accounting method for estimating the
allowance for doubtful accounts at the amount indicated by
the year-end aging of accounts receivable.
a. 900,000 debit
b. 900,000 credit
C. 500,000 debit
d. 500,000 credit
5. What is the net realiz
on December 31, 2020
a. 9,900,000
b. 8,250,000
C. 8,350,000
d. 8,200 0
156
Transcribed Image Text:1.
What is the balance of the allowance for doubtful accounts
on December 31, 2020 before adjustment?
a. 1,100,000
b. 1,150,000
c. 1,250,000
d. 1,200,000
. What is the required allowance for doubtful accounts on
December 31, 2020?
a. 1,650,000
b. 1,950,000
c. 1,700,000
d. 1,450,000
3. What amount should be reported as doubtful accounts
expense for the current year?
a. 1,200,000
b. 1,650,000
900,000
d.
c.
950,000
4. What is the year-end adjustment to the allowance for
doubtful accounts on December 31, 2020?
a. 900,000 debit
b. 900,000 credit
c. 500,000 debit
d. 500,000 credit
What is the net realizable value of accounts receivable
on December 31, 2020?
a. 9,900,000
b. 8,250,000
c. 8,350,000
d. 8,200,000
157
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