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Problem - Naseen Company has P3,100,000 of accounts receivable at the end of the year. P1,200,000 are not yet due but it is estimated that 1% of which is uncollectible. P900,000 are one to two months past due, 98% of which may be collectible. 6% of the remaining balance is estimated to be uncollectible. During the year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written of in prior years. At the beginning of the current year, the allowance for doubtful accounts was P60,000. What amount should the company debit to doubtful accounts expense?
a. 80,000
b. 60,000
c. 90,000
d. 70,000
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