AB Company, a resident foreign corporation using cash basis of accounting to report on a fiscal...

 

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AB Company, a resident foreign corporation using cash basis of accounting to report on a fiscal year ending every August 31, had the following account balances in its August 31, 2020 trial balance: P8,000,000 5,000,000 300,000 Credit Sales Accounts Receivable (60% from resident clients) Allowance for bad debts For the year ending August 31, 2020, AB Company estimates a provision of 5% of receivables. AB Company was able to collect 80,000 from accounts that were previously written off: Compute for the deductible bad debt expense. P AB Company, a resident foreign corporation using cash basis of accounting to report on a fiscal year ending every August 31, had the following account balances in its August 31, 2020 trial balance: P8,000,000 5,000,000 300,000 Credit Sales Accounts Receivable (60% from resident clients) Allowance for bad debts For the year ending August 31, 2020, AB Company estimates a provision of 5% of receivables. AB Company was able to collect 80,000 from accounts that were previously written off: Compute for the deductible bad debt expense. P

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