YZ Company had the following information relating to its accounts receivable: Accounts receivable, 12/31/2020-P780,000 Credit sales during 2021- P3,290,000 Collections from customers during 2021 (excluding recovery of P20,000)- P3,640,000 Accounts written off during 2021-P85,000 Collection of accounts written off in prior years- P20,000 Estimated uncollectible accounts per aging at 12/31/2021-P63,000 At December 31, 2021, CYZ Company's accounts receivable before allowance for uncollectible accounts should be
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
CYZ Company had the following information relating to its
Accounts receivable, 12/31/2020-P780,000
Credit sales during 2021- P3,290,000
Collections from customers during 2021 (excluding recovery of P20,000)- P3,640,000
Accounts written off during 2021-P85,000
Collection of accounts written off in prior years- P20,000
Estimated uncollectible accounts per aging at 12/31/2021-P63,000
At December 31, 2021, CYZ Company's accounts receivable before allowance for
uncollectible accounts should be
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