Use the following information for the next four questions: From inception of operations, Alas Company provided for bad debts expense under the allowance method. Provisions were made monthly at 2% of credit sales, bad debts written off were charged to the allowance account and recoveries of bad debts previously written off were credited to the allowance account. No year- end adjustments to the allowance account were made. The allowance for doubtful accounts was P135,000 on January 1, 2020. During the year 2020, credit sales totaled P9,200,000, interim provisions for doubtful accounts were made at 2% of credit sales, P82,000 of bad debts were written off, and recoveries of accounts previously written off amounted to P17,000. The entity prepared an aging of accounts receivable for the first time on December 31, 2020. Balance Uncollectible November - December July - October January - June Prior to January 1 2020 2,180,000.00 2% 590,000.00 10% 436,000.00 25% 242,000.00 3,448,000.00 75% Total

Use the following information for the next four questions: From inception of operations, Alas Company provided for bad debts expense under the allowance method. Provisions were made monthly at 2% of credit sales, bad debts written off were charged to the allowance account and recoveries of bad debts previously written off were credited to the allowance account. No year- end adjustments to the allowance account were made. The allowance for doubtful accounts was P135,000 on January 1, 2020. During the year 2020, credit sales totaled P9,200,000, interim provisions for doubtful accounts were made at 2% of credit sales, P82,000 of bad debts were written off, and recoveries of accounts previously written off amounted to P17,000. The entity prepared an aging of accounts receivable for the first time on December 31, 2020. Balance Uncollectible November - December July - October January - June Prior to January 1 2020 2,180,000.00 2% 590,000.00 10% 436,000.00 25% 242,000.00 3,448,000.00 75% Total

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 44P

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