Cabuyao Company provides for doubtful accounts based 3% of credit sales. The following data are available for 2021. Credit sales during 2021 P 21,000,000 Allowance for doubtful accounts 1/1/21 170,000 Collection of accounts written off in prior years (Customer credit was reestablished 80,000 Customer accounts written off as uncollectible during 2021 300,000 What is the balance in allowance for doubtful accounts as at December 31, 2021? A. P 420,000 B. P 580,000 C. P 500,000 D. P 630,000
Cabuyao Company provides for doubtful accounts based 3% of credit sales. The following data are available for 2021. Credit sales during 2021 P 21,000,000 Allowance for doubtful accounts 1/1/21 170,000 Collection of accounts written off in prior years (Customer credit was reestablished 80,000 Customer accounts written off as uncollectible during 2021 300,000 What is the balance in allowance for doubtful accounts as at December 31, 2021? A. P 420,000 B. P 580,000 C. P 500,000 D. P 630,000
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 2SEA: UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES Rossins Racers has total credit sales for the year of...
Related questions
Question
Cabuyao Company provides for doubtful accounts based 3% of credit sales. The following data are available for 2021.
Credit sales during 2021 |
P 21,000,000 |
Allowance for doubtful accounts 1/1/21 |
170,000 |
Collection of accounts written off in prior years (Customer credit was reestablished |
80,000 |
Customer accounts written off as uncollectible during 2021 |
300,000 |
What is the balance in allowance for doubtful accounts as at December 31, 2021?
A. P 420,000
B. P 580,000
C. P 500,000
D. P 630,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning