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Exercise 3 - 2 Coachella Co, prepared the following analysis of its accounts receivable on December 31, 2020: Number of days past due Amount 0-30
Exercise 3 - 2 Coachella Co, prepared the following analysis of its accounts receivable on December 31, 2020: Number of days past due Amount 0-30 P5,000,000 31-60 3,500,000 61-90 1,000,000 91-180 500,000 Over 180 100,000 Coachellas experience on the uncollectibility of its accounts receivables for the last five years are summarized below: Year 0-30 3 2019 2018 2017 2016 2015 End of year balance P 9,700,000 9,300,000 8,800,000 8,200,000 7,500,000 2 4 4. 2 % Uncollectible on days overdue 31-60 61-90 90-180 8 18 48 9 19 52 10 21 46 7 17 54 6 15 50 Over 180 79 72 85 81 78 Before any adjustments were made, the balance of the allowance for doubtful accounts was P175,000. Coachella determines the balance of the allowance for doubtful accounts at the average percentage of the losses for the last five years. The entity writes off receivables if they are determined to be totally worthless. 1. Compute for the adjusted balance of Coachellas allowance for doubtful accounts on December 31, 2020. 2. Compute for the doubtful accounts expense that Coachella should recognize in 2020. 3. Determine the net realizable value of Coachella's accounts receivable on December 31, 2020
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