Choose the correct letter of answer Entity A has accounts receivable of ₱500,000 and a related allowance for bad debts of ₱120,000. How much is the carrying amount of the accounts receivable? A. 620,000 B.500,000 C. 480,000 D. 380,000
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.
Choose the correct letter of answer
Entity A has accounts receivable of ₱500,000 and a related allowance for
A. 620,000
B.500,000
C. 480,000
D. 380,000
If deposit for lease contract was recorded as Rent Expense,
A. expense is understated.
B.asset is not affected.
C.profit is overstated.
D. owner’s equity is understated.
Inventory, beg. ₱50,000; Net purchases, ₱120,000; Cost of goods sold, ₱80,000. How much is the Inventory, end.?A. 90,000
B. 120,000
C. 70,000
D. 80,000
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