Horus Company provided for doubtful accounts expense monthly at 3%of credit sales. The balance in the allowance for doubtful accounts was P1,000,000 on January 1 , 2019. During 2019, credit sales totaled P20,000,000, interim provisions for doubtful accounts were made at 3% of credit sales, P200,000 accounts were written off, and recoveries of accounts previously written off amounted to P50,000. An aging of accounts receivable was made on December 31, 2019. 1 – 60 days 6,000,000 10% uncollectible 61 – 180 days 2,000,000 20% uncollectible 181 – 360 days 1,500,000 30% uncollectible More than one year 500,000 50% uncollectible 10,000,000 Based on the preview of the “more than one year” category, additional accounts of P100,000 are to be written off on December 31, 2019. 1. What amount should be reported as doubtful accounts expense for the current year? 2. What is the year-end adjustment to the allowance for doubtful accounts on December 31,2019? 3. What is the carrying amount of accounts receivable on December 31,2019?
Horus Company provided for doubtful accounts expense monthly at 3%of credit sales. The
balance in the allowance for doubtful accounts was P1,000,000 on January 1 , 2019.
During 2019, credit sales totaled P20,000,000, interim provisions for doubtful accounts were
made at 3% of credit sales, P200,000 accounts were written off, and recoveries of accounts
previously written off amounted to P50,000.
An aging of
1 – 60 days 6,000,000 10% uncollectible
61 – 180 days 2,000,000 20% uncollectible
181 – 360 days 1,500,000 30% uncollectible
More than one year 500,000 50% uncollectible
10,000,000
Based on the preview of the “more than one year” category, additional accounts of P100,000
are to be written off on December 31, 2019.
1. What amount should be reported as doubtful accounts expense for the current year?
2. What is the year-end adjustment to the allowance for doubtful accounts on December
31,2019?
3. What is the carrying amount of accounts receivable on December 31,2019?
pls answer them all thank youuu
Step by step
Solved in 4 steps with 4 images
