Problem 1:

Pizza Corporation reported the following information on its balance sheet dated December 2019

Accounts ReceivableP4, 403,000

Less Allowance for doubtful Accounts291,000

P4, 649,000

The following events occurred during 2020:

1.Made credit sales of P18,600,000 and cash sales of P4,800,000

2.Collect P18, 414,000 from customers on account.

3.Wrote off 264,000 of accounts considered to be uncollectible

4.Collect P24,000 from customers whose account had been written off as uncollectible

5.Estimate that 5% of the accounts receivable balance at year-end would prove to be uncollectible.

Instructions: Compute for the following:

1.Accounts Receivable balance as December 31, 2020/

2.Allowance for doubtful Account balance as of December 31, 2020.

3.Doubtful Accounts Expense for the year ended Decemb