Situation 1 Zee Company recorded the following data at the end of the current year. Accounts receivable 8,000,000 Credit sales 20,000,000 Doubtful accounts expense (2% of credit sales) 400,000 The allowance for doubtful accounts on January 1 has a balance of P150,000. The entity elected to estimate its doubtful accounts by using percent of accounts receivable method. The entity estimated that 10% would be a good estimate.
Situation 1 Zee Company recorded the following data at the end of the current year. Accounts receivable 8,000,000 Credit sales 20,000,000 Doubtful accounts expense (2% of credit sales) 400,000 The allowance for doubtful accounts on January 1 has a balance of P150,000. The entity elected to estimate its doubtful accounts by using percent of accounts receivable method. The entity estimated that 10% would be a good estimate.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...
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What amount of doubtful account expense should Zee Company report for the current year?
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