Happy Breakup Corp.'s accounts receivable subsidiary ledger shows the following information: ACCOUNT BALANCE INVOICE CUSTOMER DECEMBER 31, 20x7 DATE AMOUNT P14,000 21,180 12,000 8,920 20,000 10,600 23,140 22,000 19,200 12,400 17,400 Wala Label, Inc. (WL) P35,180 1206/x7 11/29/x7 Wala Ka Jowa, Co. (WKJ) P20,920 09/27/x7 08/20/x7 Walang Forever Corp. (WF) P30,600 12/08/x7 10/25/x7 Sana All Co. (SA) P45,140 11/17/x7 10/09/x7 M.U. Inc. P31,600 7א1212 12/02/x7 Malaon Ka Corp. (MK) P17,400 09/12/x7 The estimated bad debts rates below are based on Happy Breakup's receivable collection experience. Age of Accounts Rate 0- 30 days 31 - 60 days 61 – 90 days 91 – 120 days Over 120 days 1% 1.5% 3% 10% 50% The allowance for bad debts account a debit balance of P4,000 on December 31, 20x7,
Happy Breakup Corp.'s accounts receivable subsidiary ledger shows the following information: ACCOUNT BALANCE INVOICE CUSTOMER DECEMBER 31, 20x7 DATE AMOUNT P14,000 21,180 12,000 8,920 20,000 10,600 23,140 22,000 19,200 12,400 17,400 Wala Label, Inc. (WL) P35,180 1206/x7 11/29/x7 Wala Ka Jowa, Co. (WKJ) P20,920 09/27/x7 08/20/x7 Walang Forever Corp. (WF) P30,600 12/08/x7 10/25/x7 Sana All Co. (SA) P45,140 11/17/x7 10/09/x7 M.U. Inc. P31,600 7א1212 12/02/x7 Malaon Ka Corp. (MK) P17,400 09/12/x7 The estimated bad debts rates below are based on Happy Breakup's receivable collection experience. Age of Accounts Rate 0- 30 days 31 - 60 days 61 – 90 days 91 – 120 days Over 120 days 1% 1.5% 3% 10% 50% The allowance for bad debts account a debit balance of P4,000 on December 31, 20x7,
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13GI
Related questions
Question
38. The company’s
a. P32,600
b. P44,320
c. P44,600
d. P42,000
39. The allowance for
a. P13,199
b. P6,199
c. P9,699
d. P9,043
40. What entry should be made on December 31, 20x7, to adjust the allowance for bad debts
account?
a. Bad debt expense 13,699
Allowance for bad debts 13,699
b. Bad debt expense 5,199
Allowance for bad debts 5,199
c. Allowance for bad debts 5,199
Bad debts expense 5,199
d. Bad debt expense 9,699
Allowance for bad debts 9,699
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning