Question
ABC Co.'s had the following account balances at the beginning of the period: Accounts Receivable Allowance for bad debts 120,000 9,000 The following transactions
ABC Co.'s had the following account balances at the beginning of the period: Accounts Receivable Allowance for bad debts 120,000 9,000 The following transactions occurred during the period: a. Sales on account, P250,000. b. Collections of sales on account, P220,000. c. The collectability of P30,000 accounts receivable was found to be doubtful. d. P15,000 accounts receivable were deemed worthless. e. P8,000 previously written off accounts receivable was subsequently collected (not included in the collections above). Requirements: a. Prepare the journal entries; b. Determine the ending balances of accounts receivable and allowance for bad debts using T-accounts; c. Determine the carrying amount of the accounts receivable at year-end.
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