Lion Corporation is located in Quezon City but does business throughout Metro Manila. Thecompany builds and sells equipment used in manufacturing pharmaceuticals. On December 31,2021, Lion's accounts receivable are as follows:Individually significant receivablesA CompanyB CompanyC CompanyDCompanyP320,000800,000480,000400,000All other receivables2,000,000TotalP.4,000,000Lion Corporation determines that A Company's receivable is impaired by P160,000 and DCompany's receivable is totally impaired. The otherreceivables from B and Care not consideredimpaired. Lion determines that a composite rate of 2% is appropriate to measure impairment onall other receivables.What is the total impairment of receivable for Lion Corporation for 2021?

Workings: Total Impairment of receivable of Lion Corporation for…

Lion Corporation is located in Quezon City but does business throughout Metro Manila. The company builds and sells equipment used in manufacturing pharmaceuticals. On December 31, 2021, Lion's accounts receivable are as follows: Individually significant receivables A Company B Company c Company 320,000 800,000 480,000 DCompany All other receivables 400,000 2,000,000 Total P 4.000,000 Lion Corporation determines that A Company's receivable is impaired by P160,000 and D Company's receivable is totally impaired. The otherreceivables from B and C are not considered impaired. Lion determines that a composite rate of 2% is appropriate to measure impairment on all other receivables.

Lion Corporation is located in Quezon City but does business throughout Metro Manila. The company builds and sells equipment used in manufacturing pharmaceuticals. On December 31, 2021, Lion's accounts receivable are as follows: Individually significant receivables A Company B Company c Company 320,000 800,000 480,000 DCompany All other receivables 400,000 2,000,000 Total P 4.000,000 Lion Corporation determines that A Company's receivable is impaired by P160,000 and D Company's receivable is totally impaired. The otherreceivables from B and C are not considered impaired. Lion determines that a composite rate of 2% is appropriate to measure impairment on all other receivables.

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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