28.On December 31, 2021, Chel Company had an unadjusted credit balance of P10,000 in its allowance for expected credit loss account. An analysis of Chel Company's trade accounts receivable at that date revealed the following: Age Amount Est. Uncollectible 1-30 da 600,000 5% 31-60 da 40,000 10% over 60 da 20,000 14,000 How much is the impairment loss (Uncollectible Accounts Expense) for the period ended December 31, 2021?
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
28.On December 31, 2021, Chel Company had an unadjusted credit balance of P10,000 in its allowance for expected credit loss account. An analysis of Chel Company's trade
Age Amount Est. Uncollectible
1-30 da 600,000 5%
31-60 da 40,000 10%
over 60 da 20,000 14,000
How much is the impairment loss (Uncollectible Accounts Expense) for the period ended December 31, 2021?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
