Reference no: EM132704505

ABC Company had a January 1, 2016 credit balance in the Allowance for Doubtful Accounts of P10,000. During 2016, sales and sales return &allowances amounted to P5,100,000 and P100,000, respectively. ABC also wrote off P60,000 of accounts receivable and collected P5,000 on accounts previously written off. The balance of AR was 700,000 at 1/1/2016 and P800,000 at 12/31/16.

Question 1: If the estimate of uncollectible is made by taking 1.5% of net credit sales, the adjustments is?

Question 2: If the estimate of uncollectible is made by taking 10% of gross accounts receivable, the amount of allowance for bad debt as of December 31, 2016 is?

Question 3: If the estimate of uncollectible is made based on the required allowance per aging of P90,000, the amount of Bad debt expense is?