At January 1, 2020, I know this Company had a credit balance of P520,000 in its allowance for uncollectible accounts. Based on past experience, 2% of I know this’ credit sales have been uncollectible. During 2020, I know this wrote off P650,000 of accounts receivable. Credit sales for 2018 were P18,000,000. In its December 31, 2020 balance sheet, what amount should I know this report as allowance for uncollectible accounts? P590,000 P230,000 P880,000 P360,000

At January 1, 2020, I know this Company had a credit balance of P520,000 in its allowance for uncollectible accounts. Based on past experience, 2% of I know this’ credit sales have been uncollectible. During 2020, I know this wrote off P650,000 of accounts receivable. Credit sales for 2018 were P18,000,000. In its December 31, 2020 balance sheet, what amount should I know this report as allowance for uncollectible accounts? P590,000 P230,000 P880,000 P360,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 7RE: McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...

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