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Wasabi Corp.'s accounts receivable subsidiary ledger shows the following information: Customer Account balance Invoice Date Invoice Amount Ruel, Inc 35,180 12/6/12 14,000 11/29/12 21,180 Blanca,

Wasabi Corp.'s accounts receivable subsidiary ledger shows the following

information:

Customer

Account balance

Invoice Date

Invoice

Amount

Ruel, Inc

35,180

12/6/12

14,000

11/29/12

21,180

Blanca, Inc

20,920

9/27/12

12,000

8/20/12

8,920

Hannah, Inc

30,600

12/8/12

20,000

10/25/12

10,600

Renee, Inc

45,140

11/17/12

23,140

10/9/12

22,000

Henry, Inc

31,600

12/12/12

19,200

12/2/12

12,400

Edmund, Inc.

17,400

9/12/12

17,400

The estimated bad debt rates are based on Wasabi Corp's receivable collection

experience.

Age of Accounts

Rate

0-30 days

1%

31-60 days

1.5%

61-90 days

3%

91-120 days

10%

Over 120 days

50%

The allowance for bad debts account had a debit balance of P5,500 on

December 31, 2012, before adjustment.

The allowance for bad debts to be reported on the statement of financial

position at December 31, 2012, is

142.

The following transactions affecting the accounts receivable of Aaron

Company took place during the year ended December 31, 2014:

Sales (cash and credit)

5,900,000

Cash received from credit customers, all of whom took advantage

of the discount feature of the company's credit terms 4/10,n/30

3,024,000

Cash received from cash customers

2,100,000

Accounts receivable written off as worthless

50,000

Credit memorandum issued to credit customers for sales returns

and allowances

250,000

Cash refunds given to cash customers for sales returns and

allowances

20,000

Recoveries on accounts receivable written off as uncollectible in

prior periods (not included in cash amount stated above)

80,000

The following balances were taken from the January 1, 2014 statement of

financial position:

Accounts receivable

950,000

Allowance for bad debts

90,000

The entity provides for its net uncollectible account losses by crediting

allowance for bad debts for 2% of net credit sales for the fiscal period.

What is the balance of allowance for bad debts after adjustment on December

31, 2014?

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