Kainan Company provided the following information. The allowance for doubtful accounts as January 1, 2019 has a credit of P170,000. Bad debt recoveries and bad debts written off in 2019 were P30,000 and P235,000, respectively. Until December 31, 2019 the allowance account had been calculated as a percentage of net sales. It was decided however to provide for doubtful accounts commencing with the December 31, 2019 adjusting entry on the basis of an analysis of the age of the receivables. The following schedule was prepared.

Required:

1. What is the required allowance for doubtful accounts on December 31, 2019?

2. How much would be the doubtful accounts expense for 2019?

3. What is the net realizable value of accounts receivable on December 31, 2019?

Problem 5 Kainan Company provided the following information. The allowance for doubtful accounts as January 1, 2019 has a credit of P170,000. Bad debt recoveries and bad debts written off in 2019 were P30,000 and P235,000, respectively. Until December 31, 2019 the allowance account had been calculated as a percentage of net sales. It was decided however to provide for doubtful accounts commencing with the December 31, 2019 adjusting entry on the basis of an analysis of the age of the receivables. The following schedule was prepared. Percent uncollectible Not yet due 1,700,000 NIL 130 days past due 1,200,000 5 31-60 days past due 100,000 25 6190 days past due 150,000 50 Over 90 days pas due 120,000 100 Additional accounts to be written off 30,000 Percent- uncollectible Not yet due 1,700,000 NIL 130 days past due 1,200,000 5 31-60 days past due 100,000 25 6190 days past due 150,000 50 Over 90 days pas due 120,000 100 Additional accounts to be written off 30,000 Required: 1. What is the required allowance for doubtful accounts on December 31, 2019? 2. How much would be the doubtful accounts expense for 2019? 3. What is the net realizable value of accounts receivable on December 31, 2019