5. Omega Company prepared an aging of accounts receivable on December 31, 2013 and determined that the net realizable value of the accounts receivable was P2,500.000. Alowance for uncollectible accounts on January t Accounts witten oit as uncolectible Accounts receivable on December 31 Uncollectible acounts recovery 280.000 230.000 2.700.000 50.000 What is the uncollectble accounts expense for 20137 a. 230,000 b. 200.000 C 150.000 d. 100.000
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.
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