please answer this problem and show the solution RECEIVABLESYou are auditing the Accounts Receivable of LOPEZ Inc. as of December 31, 2018. You found the followinginformation in the general journal:Accounts ReceivableP1,466,720(46,720)P1.420.000Less: AFDAAccounts Receivable, netThe accounts receivable subsidiary ledger had the following details:Involce dateCustomersAmountBalanceEscorido09/12/18139,200153,60099,200139,200Alamada12/12/1812/02/18252,800Dulay11/17/18185,120176,000160,00010/08/18361,120Ello12/08/1810/25/1844,80040,00096,00008/20/18SampanSangidPorcadilla244,80096,00071,36009/27/1808/20/1871,360112,000169,44012/06/18281,4401.446.72011/29/18Total Additional Info:a. You discovered based on your review of subsequent events that Sangid recently went bankrupt, thusyou suggested that the amount receivable from the same shall be written off.b. You also discovered that the invoice dated 12/02/18 has already been settled by Alamada per ORnumber 34675. This amount however has been erroneously posted against Dulay's subsidiary ledgeras a settlement for an invoice dated 11/05/18 for the same amount.c. The estimated bad debt rates below are based on the company's receivable collection experience:Age of accounts % of collectability0-30 days31-60 days61-90 days91-120 daysOver 120 days98%95%90%80%50%Requirements:1. If there were no other entries to the allowance for doubtful accounts, what is the correct bad debt expensefor the year?2. What is the correct allowance for bad debt expense for the year ended December 31, 2018?3. What is the net adjustment to the Accounts Receivable in the general ledger?4. What is the carrying value of the company's accounts receivable as of December 31, 2018?5. What is the necessary adjusting entry to adjust any unallocated difference between Subsidiary Ledger andGeneral Ledger?

The balance of Accounts receivable and the allowance for doubtful debts for LOPEZ Inc. as on…

Over 120 days 50% tequirements: 1. If there were no other entries to the allowance for doubtful accounts, what is the correct bad debt expense for the year? 2. What is the correct allowance for bad debt expense for the year ended December 31, 2018? 3. What is the net adjustment to the Accounts Receivable in the general ledger? 4. What is the carrying value of the company's accounts receivable as of December 31, 2018? 5. What is the necessary adjusting entry to adjust any unallocated difference between Subsidiary Ledger and General Ledger?

Over 120 days 50% tequirements: 1. If there were no other entries to the allowance for doubtful accounts, what is the correct bad debt expense for the year? 2. What is the correct allowance for bad debt expense for the year ended December 31, 2018? 3. What is the net adjustment to the Accounts Receivable in the general ledger? 4. What is the carrying value of the company's accounts receivable as of December 31, 2018? 5. What is the necessary adjusting entry to adjust any unallocated difference between Subsidiary Ledger and General Ledger?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 8E

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