4. How much increase in the allowance for uncollectible accounts is required on December 31, 2022? 57,400 40,320 43,600 137,400 5. What is the balance of the allowance for uncollectible accounts after all the necessary adjusting entries on December 31, 2022? 127,480 60,000 113,800 117,400
4. How much increase in the allowance for uncollectible accounts is required on December 31, 2022? 57,400 40,320 43,600 137,400 5. What is the balance of the allowance for uncollectible accounts after all the necessary adjusting entries on December 31, 2022? 127,480 60,000 113,800 117,400
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...
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Question
4.
How much increase in the allowance for uncollectible accounts is required on December 31, 2022?
57,400
40,320
43,600
137,400
5.
What is the balance of the allowance for uncollectible accounts after all the necessary adjusting entries on December
31, 2022?
31, 2022?
127,480
60,000
113,800
117,400
Transcribed Image Text:The financial statements of Exo Corporation included the following:
December 31, 2021
3,675,000
81,000
December 31, 2022
Accounts receivable
Allowance for doubtful accounts
Sales on account
22,500,000
21,000,000
Cash collected from customers
Among the cash collections was the full recovery of an P80,000 receivable from Big Company, a customer whose account
had been written off as worthless late in 2021.
During 2022, it was necessary to write off uncollectible customers' accounts totaling P101,000.
On December 1, 2022, Bang Electronics, Inc., a customer, settled its account by issuing to Exo Corporation a 12%, six-
month note for P1,300,000.
At December 31, 2022, the accounts receivable included P504,000 past due accounts. After careful study of all past-due
accounts, the management estimated that the probable loss contained therein was 10%. In addition, 2% of the current
accounts receivable might prove uncollectible.
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