Chrizzy Company revealed the following accounts in the unadjusted trial balance on December 31, 2020 (see attached photo). The entity estimated that 3% of net credit sales will become uncollectible. What amount of allowance for doubtful accounts should be recognized on December 31, 2020?

Please provide computation and explanation. Thank you

Credit Accounts receivable Allowance for doubtful accounts Net credit sales Debit 25,000,000 50,000 P2,000,000 X Chrizzy Company revealed the 0/3 following accounts in the unadjusted trial balance on December 31, 2020 (see attached photo). The entity estimated that 3% of net credit sales will become uncollectible. What amount of allowance for doubtful accounts should be recognized on December 31, 2020? * Credit Accounts receivable Allowance for doubtful accounts Net credit sales Debit 25,000,000 50,000 P2,000,000 P600,000 P650,000 550,000 P200,000 Correct answer P550,000