Reference no: EM132907491

Question - On January 1, 2015, Lovely Company reported the following:

Accounts receivable 2,000,000

Allowance for doubtful accounts 100,000

Additional information for the current year:

Cash sales of the entity amount to P 800,111.00 and represent 10% of gross sales.

Ninety percent of the credit sales customers do not take advantage of the 5/10, n/30 terms.

Customers who did not take advantage of the discount paid P 5,940,999.00.

It is expected that cash discounts of P 11,099.00 will be taken on accounts receivable outstanding at December 31, 2015. Sales returns amounted P 80,763.00. All returns were from charge sales.

During the year accounts totaling P 60,887.00 were written off as uncollectible.

Recoveries during the year amounted to P 10,111.00. This amount is not included in the collections.

The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the outstanding accounts receivable at end.

Required - How much is the net realizable value of accounts receivable on December 31, 2015?