Exercise 3-2 2020: Coachella Co. prepared the following analysis of its accounts receivable on December 31,...

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Exercise 3-2 2020: Coachella Co. prepared the following analysis of its accounts receivable on December 31, Number of days past due 0-30 31-60 61-90 91-180 Over 180 23 Amount P5,000,000 3,500,000 1,000,000 500,000 100,000 Coachella's experience on the uncollectibility of its accounts receivables for the last five years are summarized below: Year End of year balance % Uncollectible on days overdue 0-30 31-60 61-90 90-180 Over 180 2019 P 9,700,000 3 8 18 48 79 2018 9,300,000 2 9 19 52 72 2017 8,800,000 4 10 21 46 85 2016 8,200,000 4 7 17 54 81 2015 7,500,000 2 6 15 50 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 Coachella's 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 Exercise 3-2 2020: Coachella Co. prepared the following analysis of its accounts receivable on December 31, Number of days past due 0-30 31-60 61-90 91-180 Over 180 23 Amount P5,000,000 3,500,000 1,000,000 500,000 100,000 Coachella's experience on the uncollectibility of its accounts receivables for the last five years are summarized below: Year End of year balance % Uncollectible on days overdue 0-30 31-60 61-90 90-180 Over 180 2019 P 9,700,000 3 8 18 48 79 2018 9,300,000 2 9 19 52 72 2017 8,800,000 4 10 21 46 85 2016 8,200,000 4 7 17 54 81 2015 7,500,000 2 6 15 50 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 Coachella's 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