ABC Company has Accounts Receivable at the beginning of the year amounting to P678,000. During the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Company has Accounts Receivable at the beginning of the year amounting to P678,000. During the year, service revenues amounted to P580,000, of which 120,000 is rendered for cash; collections were P115,000; accounts written-off were P43,000 and out of these, P15,000 were recovered. Service discounts amounted to P24,000. As a policy, 5% of the accounts receivable is estimated to be uncollectible. How much is the Bad Debts Expense at the end of the reporting period? ABC Company has Accounts Receivable at the beginning of the year amounting to P678,000. During the year, service revenues amounted to P580,000, of which 120,000 is rendered for cash; collections were P115,000; accounts written-off were P43,000 and out of these, P15,000 were recovered. Service discounts amounted to P24,000. As a policy, 5% of the accounts receivable is estimated to be uncollectible. How much is the Bad Debts Expense at the end of the reporting period?
Expert Answer:
Answer rating: 100% (QA)
To calculate the Bad Debts Expense at the end of the reporting period we need to consider the accoun... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these accounting questions
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study receivables while...
-
At December 31, 2020 before any year-end adjustments, accounts receivable had balance of $260000. Credit sales for 2020 are $610000, and allowance for uncollectible accounts had a credit balance of...
-
The Far North Centre (the Centre) is an anti-poverty organization funded by contributions from governments and the general public. For a number of years it has been run by a small group of permanent...
-
A financial institution can borrow $100 million for 2 years at 3%. It plans to invest this money in a 1-year security with an interest rate of 4.8% per year. Calculate net interest income for the...
-
A wide, long, insulating belt has a uniform positive charge per unit area u on its upper surface. Rollers at each end move the belt to the right at a constant speed u. Calculate the magnitude and...
-
For random sampling from the classical regression model in (17-3), reparameterize the likelihood function in terms of = 1/ and = (1/). Find the maximum likelihood estimators of and and obtain the...
-
Mackay Industries sales for the year ended December 31, 2010, were \($1,287,000\) and cost of goods sold amounted to \($707,000.\) Beginning inventory was \($58,000\) and ending inventory was...
-
Maximize 10x + 12y + 10z subject to the constraints Solve the linear programming problem by the simplex method. 2 y + 3z s 12 2 0, 20, :20.
-
These are the forecasted performance of the bank and here are the key performance indicators. Question)What are the high level observations on the performance and outlook for the bank? SEKmm...
-
Refer to the FY2016 income statement and balance sheet for General Mills, Inc. (GMI), along with the forecasted FY2017 income statement that you computed in the last exercise. Use that information...
-
Using cyclohexanone, 2-nitrobenzaldehyde and acetophenone, show how you would synthesize the depicted tetracyclic product. Give reagents and conditions and product for each step in your synthesis. NO
-
John has just resigned from his $8,000-a-month job to start up his own accounting service firm. He has paid a non-refundable 3-month advanced rental payment of $9,000 for an office space. To ensure...
-
Megan Company has fixed costs of $299,700. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Yankee...
-
A compact car with a mass of 525 kg is traveling at 23 m/sec. a. What is the momentum of the car? (12,075 kg m/sec) b. If the brakes are applied so that it slows down to 10 m/sec, what is the change...
-
Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $85,000, and it estimates that 5% will be uncollectible. Prepare the...
-
Give the domain of t(x) = 11 -x in inequality notation.
-
you are managing your first HR project. You work for Scotiabank and have been asked to deliver a new virtual Orientation & Onboarding program after the global pandemic. What are the 4 typical phases...
-
Which should drive action planning more, strengths or weaknesses? That is, is it more important to build on your strengths or to reduce your weaknesses? Explain.
-
The balance sheet of Drake Enterprises as at December 31, Year 5, is as follows: Assets Cash .............. $ 99,000 Accounts receivable ....... 143,000 Inventory ............ 191,400 Property,...
-
Financial statements of Champlain Ltd. and its 80%-owned subsidiary Samuel Ltd. as at December 31, Year 5, are presented below. Additional Information ¢ Champlain acquired 8,000 ordinary shares...
-
On January 1, Year 4, a Canadian firm, Canuck Enterprises Ltd., borrowed US$200,000 from a bank in Seattle, Washington. Interest of 7% per annum is to be paid on December 31 of each year during the...
-
Use Lagrange's equation to derive the equations governing the rotations \(\theta_{1}, \theta_{2}\), and \(\theta_{3}\) for the springconnected triple pendulum system shown in Figure 5.41. 6000 k 6000...
-
A rigid beam acts as a compound pendulum, suspended from an elastically restrained block that can undergo horizontal motion, as drawn in Figure 5.43. Derive the equations of motion using Lagrange's...
-
A pendulum is suspended from a torsionally restrained disk, as in Figure 5.42, where \(\alpha\) is the angle of rotation of the disk, and \(\theta\) is the relative angle of the pendulum measured...
Study smarter with the SolutionInn App