Problem 5-18 (PHILCPA Adapted) On January 1, 2020, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Recoveries Credit sales Writeoffs 22,000 260,000 295,000 300,000 310,000 2017 11,100,000 12,250,000 14,650,000 15,000,000 37,000 36,000 2018 2019 2020 40,000 The collections from customers during 2020 totaled 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 2020? a. 310,000 b. 300,000 c. 222,000 d. 378,000

Problem 5-18 (PHILCPA Adapted) On January 1, 2020, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Recoveries Credit sales Writeoffs 22,000 260,000 295,000 300,000 310,000 2017 11,100,000 12,250,000 14,650,000 15,000,000 37,000 36,000 2018 2019 2020 40,000 The collections from customers during 2020 totaled 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 2020? a. 310,000 b. 300,000 c. 222,000 d. 378,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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