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Sasha Novikov had P2,500,000 for his beginning balance of accounts receivable for 2022. It is the company's policy to record bad debts at 2.5% up
Sasha Novikov had P2,500,000 for his beginning balance of accounts receivable for 2022. It is the company's policy to record bad debts at 2.5% up until the end of 2021. However, moving forward, the company moved to an aging policy based on the following table: Days outstanding 30-90 days 91-180 days >180 day Uncollectability rate 2.5% 5% 5% During the year, Sasha rendered P7,250,000 worth of services and received P8,000,000 from customers. Of the total accounts receivable at year-end, 22.5% were outstanding for less than a month, 20% were outstanding for 1 month, 5% were outstanding for 2 months, another 5% were outstanding for 3 months, 15% were outstanding for 4 months, 5% were outstanding for 5 months, 12.5% were outstanding for 6 months, and the remaining were outstanding for more than 6 months. Questions: 1. How much was Sasha Novikov's adjusted accounts receivable on December 31, 2022?. 2. How much was the adjusted balance of Sasha Novikov's allowance for bad debts on December 31, 2022? 3. How much is the bad debts expense as if December 31, 2022? 4. How much was the unadjusted balance of allowance for bad debts
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