On January 1, 2019, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit sales Writeoffs Recoveries 2016 2017 2018 2019 260,000 295,000 300,000 310,000 The collections from customers during 2019 totaled 11,100,000 12,250,000 14,650,000 15,000,000 22,000 37,000 36,000 40,000 P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. 1. What amount should be reported as doubtful accounts expense for 2019? a. 310,000 b. 300,000 c. 222,000 d. 378,000 2. What amount should be reported as allowance for doubtful accounts on December 31, 2019? a. 110,000 b. 378,000 c. 300,000 d. 478,000 3. What is the net realizable value of accounts receivable on December 31, 2019? a. 2,650,000 b. 2,690,000 c. 2,760,000 d. 2,800,000

On January 1, 2019, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit sales Writeoffs Recoveries 2016 2017 2018 2019 260,000 295,000 300,000 310,000 The collections from customers during 2019 totaled 11,100,000 12,250,000 14,650,000 15,000,000 22,000 37,000 36,000 40,000 P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. 1. What amount should be reported as doubtful accounts expense for 2019? a. 310,000 b. 300,000 c. 222,000 d. 378,000 2. What amount should be reported as allowance for doubtful accounts on December 31, 2019? a. 110,000 b. 378,000 c. 300,000 d. 478,000 3. What is the net realizable value of accounts receivable on December 31, 2019? a. 2,650,000 b. 2,690,000 c. 2,760,000 d. 2,800,000

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 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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Write-Off of Uncollectible Accounts King Enterprises had 27 customers utilizing its financial planning services in 2019. Each customer paid King $25,000 for receiving Kings assistance. King estimates that 2% of its $675,000 credit sales in 2019 will be uncollectible. During 2020, King wrote off $2,700 related to services performed in 2019. Required: 1. Prepare the journal entry to record the defaulted balance. 2. Prepare the adjusting entry to record the bad debt expense for 2019.
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