Goyo uses the allowance account for uncollectible trade accounts receivable. The allowance is based upon 3% of past due accounts (over 120 days) and 1% of current accounts as of the close of each month. Due to changing economic conditions and climate, the number of past-due accounts has increased insignificantly, and management has decided to increase the percentage based on past due accounts to 5%. The following balances are available:As of Nov. 30, 20x3 DebitCreditAccounts ReceivableP780,000-Past due accounts (included in A/R)24,000-Allowance for Doubtful Accounts-P56,000 As of Dec. 31, 20x3 DebitCreditAccounts ReceivableP860,000-Past due accounts (included in A/R)60,000-Allowance for Doubtful Accounts18,000- I NEED ADJUSTING ENTRIES FOR THIS. THANKSSS

There are 2 methods for estimating bad debt expense: Percentage of sales method Percentage of…

Answered: Goyo uses the allowance account for…

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

ChapterB: Bad Debts

Section: Chapter Questions

Problem 1P

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Goyo uses the allowance account for uncollectible trade accounts receivable. The allowance is based upon 3% of past due accounts (over 120 days) and 1% of current accounts as of the close of each month. Due to changing economic conditions and climate, the number of past-due accounts has increased insignificantly, and management has decided to increase the percentage based on past due accounts to 5%. The following balances are available:

As of Nov. 30, 20x3
	Debit	Credit
Accounts Receivable	P780,000	-
Past due accounts (included in A/R)	24,000	-
Allowance for Doubtful Accounts	-	P56,000

As of Dec. 31, 20x3
	Debit	Credit
Accounts Receivable	P860,000	-
Past due accounts (included in A/R)	60,000	-
Allowance for Doubtful Accounts	18,000	-

I NEED ADJUSTING ENTRIES FOR THIS. THANKSSS

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