On January 1, 2020 easy company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000....

 

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On January 1, 2020 easy company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit Sales Writeoffs Recoveries 2017 11,100,000 260,000 22,000 2018 12,250,000 295,000 37,000 2019 14,650,000 300,000 36,000 2020 15,000,000 310,000 40,000 The collections from customers during 2020 totaled 14 million pesos, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. What amount should be reported as allowance for doubtful accounts on December 31, 2020? What is the net realizable value of accounts receivable on December 31, 2020? On January 1, 2020 easy company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit Sales Writeoffs Recoveries 2017 11,100,000 260,000 22,000 2018 12,250,000 295,000 37,000 2019 14,650,000 300,000 36,000 2020 15,000,000 310,000 40,000 The collections from customers during 2020 totaled 14 million pesos, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. What amount should be reported as allowance for doubtful accounts on December 31, 2020? What is the net realizable value of accounts receivable on December 31, 2020?

Answer rating: 100% (QA)

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