complete solution

Problem 5-11 (AICPA Adapted) Tantrum Company provided the following information in relation to accounts receivable at year-end: Days Estimated outstanding Amount % Uncollectible 0 60 1,200,000 1% 61 120 900,000 2% Over 120 1,000,000 6% 3,100,000 During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the current year? a. 90,000 b. 80,000 c. 70,000 d. 60,000