Problem 5-6 (PHILCPA Adapted) At the beginning of current year, Rampant Company reported that the allowance for doubtful accounts has a credit balance of P170,000. Bad debt recoveries and bad debts...

1. What is the adjusting entry for the doubtful accounts expense for the current year?

2. What is the net realizable value of accounts receivable at year-end?

Please include solutions with the answers. Thank you!

Extracted text: Problem 5-6 (PHILCPA Adapted) At the beginning of current year, Rampant Company reported that the allowance for doubtful accounts has a credit balance of P170,000. Bad debt recoveries and bad debts written off in the current year were P30,000 and P235,000, respectively. The allowance account had been previously calculated as a percentage of net sales. It was decided however to provide for doubtful accounts commencing with the year-end adjusting entry on the basis of an analysis of the age of the receivables. The following schedule was prepared. Percent uncollectible Not yet due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Additional accounts to be written off 1,700,000 1,200,000 100,000 150,000 120,000 30,000 NIL 5 · 25 50 100