receivables

Problem Solving Tissot is longue EXERCISE 3-1 easonal An analysis of the accounts receivable of Grammar Inc. shows the following information: Age Balance % Collectible Current P 3,500,000 99.5 1 to 30 days past due 2,000,000 98 31 to 60 days past due 1,200,000 95 61 to 90 days past due 1,000,000 92 91 to 120 days past due 800,000 85 121 to 180 days past due 400,000 70 181 to 360 days past due 200,000 More than 360 days past due 100,000 0 ation 50 ater tible Before any adjustments were made, Grammar's allowance for doubtful accounts had a balance of P80,000. 1. Determine the required balance of Grammar's doubtful accounts at the end of the reporting period. 2. Determine the doubtful accounts expense Grammar should recognize during the period. 3. Determine the net realizable value of Grammar's accounts receivable at the end of the period. Chapter 3 . Receivables 57