Patrick recovered the following bad debts that were previously charged off? P40,000 from accounts written off in a year which had a net income of P400,000 before write-off. Amount written off for the year was P40,000. P10,000 from accounts written off in a year which had a net loss before write-off of P72,000. Amount written off for the year was P10,000. P20,000 from accounts written off in a year which a had a net income of P16,000 before write-off. Amount written off for the year was P24,000. How much of the foregoing recovery should be reported as part of gross income during the year?
Patrick recovered the following bad debts that were previously charged off? P40,000 from accounts written off in a year which had a net income of P400,000 before write-off. Amount written off for the year was P40,000. P10,000 from accounts written off in a year which had a net loss before write-off of P72,000. Amount written off for the year was P10,000. P20,000 from accounts written off in a year which a had a net income of P16,000 before write-off. Amount written off for the year was P24,000. How much of the foregoing recovery should be reported as part of gross income during the year?
Chapter6: Business Expenses
Section: Chapter Questions
Problem 43P
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Patrick recovered the following
- P40,000 from accounts written off in a year which had a net income of P400,000 before write-off. Amount written off for the year was P40,000.
- P10,000 from accounts written off in a year which had a net loss before write-off of P72,000. Amount written off for the year was P10,000.
- P20,000 from accounts written off in a year which a had a net income of P16,000 before write-off. Amount written off for the year was P24,000.
How much of the foregoing recovery should be reported as part of gross income during the year?
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