The company provides for an allowance for bad debts equivalentto 3% of total receivables. Receivables balance is P2,000,000. Theallowance for bad debts has a balance of P45,000 and P50,000 at thestart and end of the year, respectively. P30,000 of previousaccounts were actually found to be worthless and were written off.What is the deduction for bad debts for taxationpurposes?

A. 15,000

B. 25,000

C. 30,000

D. 35,000

Answer rating: 100% (QA)

As per Section 166 deduction for bad debts will allowed onl... View the full answer