FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The allowance for doubtful accounts of Chico Company as of January 1, 20X1, amounted to P550,000. During 20X1, the company wrote off P250,000 of its
1. Compute for the allowance for doubtful accounts as of December 31, 20X1, before the year-end adjustment Chico Company reported the following balances as of December 31, 20X1, before any year-end adjustments:
Accounts receivable 7,500,000
Allowance for doubtful accounts ? (Answer in 1)
Sales 20,000,000
Scenario A. Percentage of Sales:
The entity estimated that 5% of the sales would be uncollected.
Compute for the following:
2. Allowance for doubtful accounts as of December 31, 20X1 (after the year-end adjustment)
3. Doubtful accounts expense on December 31, 20X1
4. Carrying amount of the accounts receivable as of December 31, 20X1
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