Other information:                                                                Accounts receivable, beginning                                                     P500,000                              Allowance for doubtful accounts, beginning                              P50,000                              The entity's sales matrix comprises 20% cash sales and 80% credit sales.                                                                         Requirements:                                                          How much is the net realizable value, if doubtful accounts are 8% of the Accounts receivable, beginning ? What are the related journals, if doubtful accounts are 8% of the Accounts receivable, beginning?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...
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The related data of Carolina Company:                                                                   

Sales for the year                                                                                 P2,875,000                     

Cost of merchandise inventory sold                                              40% of sales    

Sales returns and allowances related to credit sales                P57,500                             

Collection related to credit sales                                                    P1,955,000                    

Worthless accounts (Accounts written-off)                                 P80,000                             

Recovered accounts                                                                           P5,000                             

 

Other information:                                                               

Accounts receivable, beginning                                                     P500,000                             

Allowance for doubtful accounts, beginning                              P50,000                             

The entity's sales matrix comprises 20% cash sales and 80% credit sales.

                                                                       

Requirements:                                                         

  1. How much is the net realizable value, if doubtful accounts are 8% of the Accounts receivable, beginning ?
  2. What are the related journals, if doubtful accounts are 8% of the Accounts receivable, beginning?
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