OCEAN PARK HOTEL manages an extensive network of boutique hotels in the country. The hotel has significant
Question:
OCEAN PARK HOTEL manages an extensive network of boutique hotels in the
country. The hotel has significant accounts receivable from three(3) customers as of Dec. 31, 2019: P2,500,000 from Boracay Inn, P4,500,000 due from Chicken House, and P4,000,000 due from Landmark Hotel. The hotel has other accounts receivable totaling P2,250,000.
The hotel has determined that the Chicken House receivable is impaired by P2,500,000 and the Landmark Hotel receivable is impaired by P1,000,000. The
receivable from Boracay Inc is not considered impaired. The hotel has also determined that a composite rate of 6% is appropriate to measure impairment on all other accounts receivable.
Organizational Behaviour Concepts Controversies Applications
ISBN: 978-0132310314
6th Canadian Edition
Authors: Nancy Langton, Stephen P. Robbins, Timothy A. Judge, Katherine Breward