The allowance for uncollectible accounts had a debit balance of P5,500 on December 31, 2021, before adjustment.
REQUIREMENT: Compute for the allowance for uncollectible accounts after adjustment.
Problem #01-22: RECEIVABLES & RELATED REVENUES Customer Balance, 12/31/21 Invoice Date Amount A P40,000 12/06/21 11/29/21 P15,000 25,000 B 20,500 09/27/21 08/20/21 12,000 8,500 C 30,600 12/08/21 10/25/21 20,000 10,600 D 45,000 11/17/21 10/09/21 32,000 13,000 E 32,000 12/17/21 12/02/21 17,000 15,000 F 17,500 09/17/21 17,500 The estimated bad debt rates below are based on Juan dela Cruz Company’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 uncollectible accounts had a debit balance of P5,500 on December 31, 2021, before adjustment. REQUIREMENT: Compute for the allowance for uncollectible accounts after adjustment.