Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Roxay company has sales of P480,000 and P450,000 for September and October respectively. Of the total Sales, 1% is returned. In addition, 75% of the
Roxay company has sales of P480,000 and P450,000 for September and October respectively. Of the total Sales, 1% is returned. In addition, 75% of the total sales account for credit sale and 20% of credit sales avail of the discount of 2%. The company is able to collect 40% of credit sales in the month of sales and 60% is collected in the following month. During October, the company has written off P13,000 of worthless accounts but had collected P20.000 from an account previously written off. The company uses, 10% percent of receivables for estimating doubtful accounts. What amount is debited to doubtful accounts expense if the balance of the allowance for doubtful accounts on Oct 1 is P7.350.50
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started