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Scenario A. Percent of Sales: Banana Company reported the following balances as of December 31 , 2020 before any year-end adjustments: Accounts receivable 6.000.000 Allowance

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Scenario A. Percent of Sales: Banana Company reported the following balances as of December 31 , 2020 before any year-end adjustments: Accounts receivable 6.000.000 Allowance for doubtful accounts 300.000 Sales 15.000.000 The entity estimated that 5% of the sales will be uncollected. Compute for the following: 1. Allowance for doubtful accounts as of December 31.2020 2 Doubtful accounts expense on December 31. 2020 3. Carrying amount of the accounts receivable as of December 31 . 2020 Scenario B. Percent of Accounts Receivable Banana Company reported the folloinring balances as of December 31 . 2020 before any yea r-end adjustments: Accounts receivable 6.000.000 Allowance for doubtful accounts 300.000 The entity estimated that 15% of the Accounts Receivable will be uncollected. Compute for the following: 4. Allowance for doubtful accounts as of December 31. 2020 5. Doubtful accounts expense on December 31. 2020 6. Carrying amount of the accounts receivable as of December 31 . 2020 Scenario C. Agigg of Accounts Receivable Banana Company reported the folloinring balances as of December 31 , 2020 before any yea r-end adjustments: Accounts receivable 6.000.000 Allowance for doubtful accounts 300.000 The aging of accounts receivable as of December 31. 2020 are provided below: Outstanding Accounts receivable Probability of collection Under 15 days 3,000,000 .96 16 30 days 2,000,000 .90 31 45 days 400,000 .80 46 60 days 300,000 .70 61 75 days 200,000 .65 Over ?'5 days 100,000 .00 The accounts which have been outstanding over 75 days and have zero probability of collection. Compute for the following: 7. Allowance for doubtful accounts as of December 31. 2020 S. Doubtful accounts expense on December 31. 2020 9. Carrying amount of the accounts receivable as of December 31 , 2020 Answers: Percent of Sales Percent of A/R Aging of A/R Scenario A Scenario B Scenario C As of December 31, 2019 Allowance for doubtful accounts 1. 4. 7. Doubtful accounts expense 2. 5. 8. Accounts receivable - net 3. 6. 9.Chico Company reported the following balances as of December 31, 2020 before any year-end adjustments: Accounts receivable 7,500,000 Allowance for doubtful accounts ? {Answer in 1} Sales 20,000,000 Scenario A. Percent of Sales: The entity estimated that 5% of the sales will be uncollected. Compute for the folloinring: Z Allowance for doubtful accounts as of December 31. 2020 {after the year-end adjustment} 3. Doubtful accounts expense on December 31. 2020 4. Carrying amount of the accounts receivable as of December 31, 2020 Scenario B. Percent of Accounts Receivable The entity estimated that 15% of the Accounts Receivable will be uncollected. Compute for the following: 5. Allowance for doubtful accounts as of December 31, 2020 {after the year-end adjustment} 6. Doubtful accounts expense on December 31, 2020 7. Carrying amount of the accounts receivable as of December 31, 2020 Scenario C. Agigg of Accounts Receivable The aging of accounts receivable as of December 31, 2020 are provided below: Outstanding Accounts receivable Probability of collection Under 15 days 3,600,000 .96 16 30 days 2,500,000 .90 31 45 days 500 .000 .30 46 60 days 400 .000 .70 61 75 days 300 .000 .65 Over 75 days 200 .000 .00 Compute for the folloinring: 8. Allowance for doubtful accounts as of December 31, 2020 {after the year-end adjustment} 9. Doubtful accounts expense on December 31, 2020 10. Carrying amount of the accounts receivable as of December 31, 2020 Compute for the following: Percent of Sales Percent of A/R Aging of A/R Scenario A Scenario B Scenario C As of December 31, 2020 Allowance for doubtful accounts (before year-end adjustment 1. Adjusted Allowance for doubtful 2. 5. accounts 8. Doubtful accounts expense 3. 6. 9. Accounts receivable - net 4. 7. 10

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