Reference no: EM133027124
Question - The adjusted trial balance of Thomas Company as of December 31, 2020 shows the following:
Debit: Accounts Receivable 1,000,000
Credit: Allowance for doubtful accounts 40,000
Additional information:
a. Cash sales of the company represent 10% of gross sales. Total sales amount to P12,000,000
b. 90% of the credit sales customers did not take advantage of the 2/10, n/30 terms. Total face value of accounts receivable collected during the year was P8,360,000
c. Sales returns in 2020 amounted to P400,000. All returns were from charge sale.
d. During 2020, accounts totaling to P40,000 were written off as uncollectible; bad debt recovery during the year amounted to P3,000
e. The allowance for bad debts is measured as follows:
|
Percentage of ending balance
|
Percent uncollectible
|
|
60
|
2
|
|
20
|
20
|
|
12
|
40
|
|
5
|
60
|
|
3
|
90
|
Required - Based on the information given, answer the following:
1. Determine the Accounts Receivable balance as of December 31, 2020?
2. Determine the Allowance for doubtful accounts, December 31, 2020?
3. Determine the Net realizable value, December 31, 2020?
4. Determine the Doubtful accounts expense for 2020?