Reference no: EM132783764
The financial statement of Anne Company included in the following information for 2020:
January 1 December 31
Accounts receivable 1,200,000
Allowance for doubtful accounts 60,000
Sales 8,000,000
Cash collected from customers 7,000,000
The cash collection included a recovery of P10,000 from a customers whose account had been written off s worthless in 2019. During 2020, it was necessary to recognized doubtful accounts expense of P100,000 and write off worthless customers' accounts P30,000. On December 31, 2020, a customer settled an account by issuing a 12% six-month note for P400,000.
problem 1: What is the net realizable value of accounts receivable on December 31, 2020?