Thankful Company had the following information relating to its accounts receivable for the year ended December 31, 2020.

Accounts receivable- Jan. 1 P1,580,000
Allowance for bad debts- Jan. 1 150,000
Total Sales 8,000,000
Collections from credit customers 4,700,000
Accounts written off 100,000
Sales returns on credit sales 20,000
Uncollectible accounts recovery 80,000
Cash sales are 20% of total sales.

The outstanding accounts receivable to be recorded on December 31, 2020, is:
a. P3,580,000
b. P3,160,000
c. P4,520,000
d. P4,700,000

Assuming that bad debts for the year is estimated at 5% of outstanding accounts receivable, what is the bad debts expense on December 31, 2020?
a. P28,000
b. P49,000
c. P158,000
d. P179,000

Answer rating: 100% (QA)

1 The correct answer is option b P 3160000 Working Particulars Amount Openi... View the full answer