How much uncollectible accounts expense should be presented on the statement of comprehensive income for the year ended December 31, 2018? 160,600194,000240,600254,600 KING KONG Company's balance in the Allowance for Uncollectible accounts was P154,000 at January1, 2018. During 2018, credit sales totaled P9,000,000, interim provisions for uncollectible accountswere made at 2% of credit sales, P95,000 of bad debts were written-off, and recoveries of accountspreviously written off amounted to P95,000. KING KONG installed a computer facility in November2018 and an aging of accounts receivable was prepared for the first time as of December 31, 2018. Asummary of the aging is as follows:EstimatedPercentageUncollectibleClassification byMonth of SaleNov. Dec. 2018Jul. - Oct. 2018Balance inEachCategoryP1,080,000650,000420,000150,0002%10%Jan. – Jun. 201825%Prior to Jan. 1, 201870%Based on the review of collectability of the account balances in the "prior to January 1, 2018" agingcategory, additional receivables totaling P60,000 were written-off as of December 31, 2018. The 70%uncollectible estimate applies to the remaining P90,000 in the category. Effective with the year endedDecember 31, 2018, KING KONG adopted a new accounting method for estimating the allowance foruncollectible accounts at the amount indicated by the year-end aging analysis of the accountsreceivable.

Allowance for doubtful accounts means where we expect some debts to become bad in near future then…

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ow much uncollectible accounts expense should be presented on the statement of comprehensive income for the year ended December 31, 2018? 160,600 194,000 240,600 254,600

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.
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