Reference no: EM132652778

Questions -

Q1. Based on its past collection experience, Ace Company provides for bad debts at the rate of 2 percent of net credit sales. On January 1, 2021, the allowance for doubtful accounts credit balance was P10,000. During 2021, Ace wrote off P18,000 of uncollectible receivables and recovered P5,000 on accounts written off in prior years. If net credit sales for 2021 totaled P1,000,000, What is the doubtful accounts expense for 2021?

Q2. Gray Company had an accounts receivable balance of P50,000 on December 31, 2021, and P75,000 on December 31, 2022. The company wrote off P20,000 of accounts receivable during 2022, and collected P3,000 on an account written off in 2020. Sales for the year 2022 totaled P620,000. All sales were on account. What amount was collected from customers on accounts receivable during 2022, including recoveries?

Q3. At January 1, 2021, Judy Co. had a credit balance of P260,000 in its allowance for uncollectible accounts. Based on past experience, 2% of Judy 's credit sales have been uncollectible. During 2021, Judy wrote off P325,000 of uncollectible accounts. Credit sales for 2021 were P9,000,000. In its December 31, 2021, balance sheet, what amount should Judy report as allowance for uncollectible accounts?