Extracted text: ABC Inc.'s accounting records disclose the following: P 1,800,000 Accounts receivable, January 1, 2021 Allowance for doubtful accounts, January 1, 2021 (credit balance) Sales for the year Collections from customers during the year 90,000 15,000,000 13,080,000 The following additional information was also obtained: > Included in the amount collected from customers was the recovery of P30,000 receivable from a customer whose account had been charged off as worthless in the prior year. > ABC determined that its receivable from a customer of P150,000 will not be collected, and management authorized its writeoff. > A customer settled its account on December 2, 2021 by issuing a 12%, 6-month note for P600,000. > The accounts receivable balance on December 31, 2021 includes P900,000 past due accounts. > The entity estimated that 20% of past due accounts will not be collected and 5% of the current accounts will not be collected as well. QUESTIONS: (Show your supporting computations in GOOD FORM) The current assets section of ABC Inc.'s statement of financial position on December 31, 2021 should include accounts receivable of a. P3,600,000 b. P2,400,000 c. P3,000,000 d. P2,970,000
Extracted text: What is the balance of the allowance for doubtful accounts before adjustment on December 31, 2021? b. P120,000 credit c. P120,000 debit c. P30,000 credit d. P30,000 debit The required allowance for doubtful accounts on December 31, 2021 is c. P315,000 d. P285,000 b. P283,500 d. P255,000 The allowance for doubtful accounts should be increased (decreased) by b. (P255,000) d. (P313,500) e. P315,000 c. P285,000 What is the adjusting entry to record the doubtful accounts expense for the current year? f. Doubtful accounts expense 285,000 Allowance for doubtful accounts 285,000 g. Doubtful accounts expense 315,000 Allowance for doubtful accounts 315,000 h. Allowance for doubtful accounts Doubtful accounts expense 255,000 255,000 i. Allowance for doubtful accounts 313,500 Doubtful accounts expense 313,500