Problem 5-18 (PHILCPA Adapted) On January 1, 2019, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit sales Writeoffs Recoveries 2016 2017 2018...


1. What amount should be reported as doubtful accounts expense for 2019?


Answer: 300,000


2. What amount should be reported as allowance for doubtful accounts on December 31, 2019?


Answer: 110,000


3. What is the net realizable value of accounts receivable on December 31, 2019?


Answer: 2,650,000



Please attach solutions on how to get the answers above. Thank you!


Problem 5-18 (PHILCPA Adapted)<br>On January 1, 2019, Easy Company reported accounts<br>receivable P2,070,000 and allowance for doubtful accounts<br>P80,000.<br>Credit sales<br>Writeoffs<br>Recoveries<br>2016<br>2017<br>2018<br>2019<br>11,100,000<br>12,250,000<br>14,650,000<br>15,000,000<br>260,000<br>295,000<br>300,000<br>310,000<br>22,000<br>37,000<br>36,000<br>40,000<br>The collections from customers during 2019 totaled<br>P14,000,000, excluding recoveries.<br>Doubtful accounts are provided for as a percentage of<br>credit sales.<br>The entity calculated the percentage annually by using<br>the experience of the three years prior to the current year.<br>

Extracted text: Problem 5-18 (PHILCPA Adapted) On January 1, 2019, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful accounts P80,000. Credit sales Writeoffs Recoveries 2016 2017 2018 2019 11,100,000 12,250,000 14,650,000 15,000,000 260,000 295,000 300,000 310,000 22,000 37,000 36,000 40,000 The collections from customers during 2019 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year.

Jun 09, 2022
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