Reference no: EM132947847
Question - The following transactions affecting the accounts receivable of Gastly Company took place during the year ended December 31, 2021:
Sales (Cash and Credit) - P5,900,000
Cash received from credit customers, all of whom took advantage of the discount feature of the company's credit terms 4/10, n/30- 3,024,000
Cash received from cash customers- 2,100,000
Accounts receivable written off as worthless -50,000
Credit memorandum issued to credit customers for sales returns and allowances -250,000
Cash refunds given to cash customers for sales returns and allowances- 20,000
Recoveries on accounts receivable written off as uncollectible in prior periods (not included in cash amount stated above)-80,000
The following balance were taken from the January 1, 2021 statement of financial position:
Accounts receivable P950,000
Allowance for doubtful accounts 100,000
The entity provided for uncollectible account losses by crediting allowance for doubtful accounts in the amount of P70,000 for the current year.
Required - Give the journal entry
What is the balance of accounts receivable on December 31, 2021?
What is the balance of allowance for doubtful accounts on December 31, 2021?