Reference no: EM132979010
Question - Thankful Company had the following information relating to its accounts receivable for the year ended December 31, 2020
Accounts receivable- Jan. 1 P1,580,000
Allowance for bad debts- Jan. 1 150,000
Total Sales 8,000,000
Collections from credit customers 4,700,000
Accounts written off 100,000
Sales returns on credit sales 20,000
Uncollectible accounts recovery 80,000
Cash sales are 20% of total sales.
The outstanding accounts receivable to be recorded on December 31, 2020 is: a. P3,580,000 b. P3,160,000 c. P4,520,000 d. P4,700,000
Assuming that bad debts for the year is estimated at 5% of outstanding accounts receivable, what is the bad debts expense on December 31, 2020? a. P28,000 b. P49,000 c. P158,000 d. P179,000
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