2. On January 1, 2017, the balance of accounts receivable of Kate Company was P5,000,000 and the allowance for doubtful accounts on the same date was P800,000. The following data were gathered: Credit...


2. On January 1, 2017, the balance of accounts receivable of Kate Company was<br>P5,000,000 and the allowance for doubtful accounts on the same date was P800,000. The<br>following data were gathered:<br>Credit Sales<br>Writeoffs<br>Recoveries<br>2014<br>10,000,000<br>250,000<br>20,000<br>2015<br>14,000,000<br>400,000<br>30,000<br>2016<br>16,000,000<br>650,000<br>50,000<br>2017<br>25,000,000<br>1,100,000<br>150,000<br>Doubtful accounts are provided for as percentage of credit sales. The accountant calculates<br>the percentage annually by using the experience of the three years prior to the current year.<br>How much should be reported as doubtful accounts expense for 2017?<br>a. 600,000<br>b. 450,000<br>950,000<br>С.<br>d. 750,000<br>

Extracted text: 2. On January 1, 2017, the balance of accounts receivable of Kate Company was P5,000,000 and the allowance for doubtful accounts on the same date was P800,000. The following data were gathered: Credit Sales Writeoffs Recoveries 2014 10,000,000 250,000 20,000 2015 14,000,000 400,000 30,000 2016 16,000,000 650,000 50,000 2017 25,000,000 1,100,000 150,000 Doubtful accounts are provided for as percentage of credit sales. The accountant calculates the percentage annually by using the experience of the three years prior to the current year. How much should be reported as doubtful accounts expense for 2017? a. 600,000 b. 450,000 950,000 С. d. 750,000

Jun 08, 2022
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