On January 1, 20X4, Alejandro Company reported accounts receivable of P2,000,000 and allowance for doubtful accounts...

 

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On January 1, 20X4, Alejandro Company reported accounts receivable of P2,000,000 and allowance for doubtful accounts of P100,000. The entity provided the following data: Credit Sales Recoveries 20X1 P11,100,000 20X2 12,250,000 20X3 14,650,000 20X4 15,000,000 Write-Offs P260,000 P22,000 295,000 37,000 300,000 200,000 36,000 50,000 The collections from customers during 20X4 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually using the experience of the three (3) years before the current year. What amount should be reported as doubtful accounts expense for 20X4? On January 1, 20X4, Alejandro Company reported accounts receivable of P2,000,000 and allowance for doubtful accounts of P100,000. The entity provided the following data: Credit Sales Recoveries 20X1 P11,100,000 20X2 12,250,000 20X3 14,650,000 20X4 15,000,000 Write-Offs P260,000 P22,000 295,000 37,000 300,000 200,000 36,000 50,000 The collections from customers during 20X4 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually using the experience of the three (3) years before the current year. What amount should be reported as doubtful accounts expense for 20X4?