JLC Corporation has annual sales of P3,500,000 for the year 2015, 80% of this is on credit.

The credit collection department determined that 10% of its credit sales would be uncollected. What would be the appropriate entry using allowance method?
If a customer whose account was viewed to be uncollectible suddenly paid P100,000. What would be the appropriate entry?

Answer rating: 100% (QA)

SOLUTION Using the allowance method JLC Corporation should create an allowance for doubtful accounts ... View the full answer