The following information is also available:Beginning balance of Accounts ReceivableP 500,000Net credit sales for the yearP 4,000,000Collections on credit sales3,000,000Allowance for doubtful accounts. January 1= 5,000 (cr)Allowance for doubtful accounts, December 31,(before adjustments)2,000 (dr)Required: Determine the Doubtful Accounts Expense and Allowance for doubtful accounts reported in the company's financial statements for 2019 assuming the company usts thefollowing:Allowance forDoubtful AccountsMethodDoubtful AccountsExpensebalance, endAging of AR1) I2)5% of Outstanding AR 3)4)3% of Net CreditSales5)6) Winner Company uses the allowance method of accounting for bad debts. The following summary schedule of past due accounts was prepared as of December 31, 2019.No. of days pastCollectionAmountdueProbability0- 30 days500,00098%31- 60 days200,00090%61- 90 days100,00085%91-120 days150,00080%Over 120 days30,00050%Total past due980,000The following information is also available:Beginning balance of Accounts ReceivableP 500,000Net credit sales for the yearP 4,000,000Collections on credit sales3,000,000Allowance for doubtful accounts. January 1= 5,000 (cr)Allowance for doubtful accounts, December 31,(before adjustments)2,000 (dr)

>Bad Debt Expense is recorded using two methods: #1: Direct write off method: Expense is…

The following information is also available: Beginning balance of Accounts Receivable P 500,000 Net credit sales for the year P 4,000,000 Collections on credit sales 3,000,000 Allowance for doubtful accounts. January 1 = 5,000 (cr) Allowance for doubtful accounts, December 31, (before adjustments) 2,000 (dr) Required: Determine the Doubtful Accounts Expense and Allowance for doubtful accounts reported in the company's financial statements for 2019 assuming the company uses the following: Allowance for Doubtful Accounts Method Doubtful Accounts balance, end Expense Aging of AR 1) 2) 5% of Outstanding AR 3) 4) 3% of Net Credit Sales 5) 6)

The following information is also available: Beginning balance of Accounts Receivable P 500,000 Net credit sales for the year P 4,000,000 Collections on credit sales 3,000,000 Allowance for doubtful accounts. January 1 = 5,000 (cr) Allowance for doubtful accounts, December 31, (before adjustments) 2,000 (dr) Required: Determine the Doubtful Accounts Expense and Allowance for doubtful accounts reported in the company's financial statements for 2019 assuming the company uses the following: Allowance for Doubtful Accounts Method Doubtful Accounts balance, end Expense Aging of AR 1) 2) 5% of Outstanding AR 3) 4) 3% of Net Credit Sales 5) 6)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 4MC: Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to...

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