Question
The December 31, 2020 statement of financial position of Leon Company showed Accounts receivable balance of P500,000 and Allowance for Bad Debts of P48,000. Following
The December 31, 2020 statement of financial position of Leon Company showed Accounts receivable balance of P500,000 and Allowance for Bad Debts of P48,000. Following is a summary of accounts receivable transactions recorded by the company in 2021:
Credit sales during the year | P 3,120,000 |
Total accounts collected during the year | 3,020,160 |
Accounts written off as uncollectible | 42,000 |
Recoveries of accounts written off in the previous year | 2,160 |
On December 31, 2021, an aging of accounts receivable indicated the following:
Age group | % of total receivable amount | Probability of collection |
Less than 60 days | 60% | 99% |
Between 61 and | 22% | 88% |
120 days |
|
|
Between 121 and 180 days | 15% | 45% |
Over 180 days | 3% | 20% |
Questions: Based on the above and the result of your audit, answer the following:
The adjusted gross balance of accounts receivable is?
Group of answer choices
560,000
562,160
570,000
604,160
The allowance for doubtful accounts as of December 31, 2021 is:
Group of answer choices
77,484
77,324
77,784
77,544
The doubtful account expense for the year 2021 is:
Group of answer choices
69,324
69,624
69,664
69,124
The net realizable value of accounts receivable as of December 31, 2021 is:
Group of answer choices
480,356
480,516
482,456
482,216
Assuming that the over 180 days account is 100% uncollectible, how much is the balance of allowance for uncollectible accounts at year end?
Group of answer choices
43,244
64,344
44,684
58,924
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