mount of the receivable according to their age and percent of uncollectible based on observable data leading to the recognition expense related to the receivable: 0-30 days, P 960,000, 5% uncollectible; 31-60 days, 64,000, 10% uncollectible; and over 60 days, P32,00 of which P 22,400 is estimated to be collectible. 1. How much is the total amount of uncollectible accounts receiv
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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.
On May 31, 2020, Peter Company had a total
1. How much is the total amount of uncollectible accounts receivable?
2. How much is the total amount of accounts receivable that is collectible?
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