7) Based on its past collection experience, JSC Company provides for bad debt at the rate of 2 percent of net credit sales. On January 1, 2021, the allowance for doubtful accounts credit balance was...

Extracted text: 7) Based on its past collection experience, JSC Company provides for bad debt at the rate of 2 percent of net credit sales. On January 1, 2021, the allowance for doubtful accounts credit balance was P10,000. During 2021, JSC wrote off P18,000 of uncollectible receivables and recovered P5,000 on accounts written off in prior years. If net credit sales for 2021 totaled P1,000,000, the doubtful accounts expense for 2021 should be a. 17,000 b. 20,000 c. 23,000 d. 35,000