What amount of doubtful accounts expense should be recognize

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Problem 1: Beerus Company prepared quarterly interim financial statements and used the percentage of credit sales method in computing doubtful accounts. The credit sales for the first, second, third and fourth quarters totaled P2,000,000, P1,500,000, P3,500,000 and P4,000,000 respectively. The doubtful account percentages for the first, second, third and fourth quarters effective for the entire year are 2%, 2%, 4%, and 5% respectively. What amount of doubtful accounts expense should be recognized in the fourth quarter income statement?

A. 550,000
B. 270,000
C. 200,000
D. 137,500

Reference no: EM132807999

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