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How much is the Doubtful accounts expense for 2019? A. 47,000 B. 62,000 C. 63,500 D. 65,000  What is the net amount of Accounts Receivables to be presented in the audited financial statements? A. 873,000 B. 886,500 C. 900,000 D. 1,000,000

How much is the Doubtful accounts expense for 2019? A. 47,000 B. 62,000 C. 63,500 D. 65,000  What is the net amount of Accounts Receivables to be presented in the audited financial statements? A. 873,000 B. 886,500 C. 900,000 D. 1,000,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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 How much is the Doubtful accounts expense for 2019?

A. 47,000

B. 62,000

C. 63,500

D. 65,000

 What is the net amount of Accounts Receivables to be presented in the audited financial statements?

A. 873,000

B. 886,500

C. 900,000

D. 1,000,000

In your audit of the December 31, 2019 financial statement of Ivy Inc., your cut-off working paper showed the following sales transactions posted in Accounts Receivable ledger for 2019: DR No. Date Sales Amount 12/28/2019 12/29/2019 12/31/2019 1/3/2020 1/3/2020 38519 4,800 3,600 38520 38521 38522 6,000 3,000 7,200 38523 Additional information: a. DR No. 38519 represents goods delivered to consignee. The goods remain unsold as at year-end. b. Sales terms are FOB Shipping Point. c. The Accounts receivable account shows an unadjusted balance of P1,000,000 as of December 31, 2019. d. Management and auditor agreed to write-off P15,000 of accounts receivable and that the balance of the allowance should be 10% of the adjusted accounts receivables. The Allowance for Doubtful Account shows a January 1, 2019 balance of P50,000. No entries were made to adjust the account for the year 2019. е.
Transcribed Image Text:In your audit of the December 31, 2019 financial statement of Ivy Inc., your cut-off working paper showed the following sales transactions posted in Accounts Receivable ledger for 2019: DR No. Date Sales Amount 12/28/2019 12/29/2019 12/31/2019 1/3/2020 1/3/2020 38519 4,800 3,600 38520 38521 38522 6,000 3,000 7,200 38523 Additional information: a. DR No. 38519 represents goods delivered to consignee. The goods remain unsold as at year-end. b. Sales terms are FOB Shipping Point. c. The Accounts receivable account shows an unadjusted balance of P1,000,000 as of December 31, 2019. d. Management and auditor agreed to write-off P15,000 of accounts receivable and that the balance of the allowance should be 10% of the adjusted accounts receivables. The Allowance for Doubtful Account shows a January 1, 2019 balance of P50,000. No entries were made to adjust the account for the year 2019. е.
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