On January 1, 2021, allowance for doubtful accounts showed a normal balance of P 60,000. During 2021, Cook provided doubtful accounts expense at P 128,000, derecognized in accounting books worthless accounts of P 92,000, and unexpectedly recovered P 24,000 of bad debts written off two years ago. QUESTION: What would be the allowance for doubtful accounts at December 31, 2021?

On January 1, 2021, allowance for doubtful accounts showed a normal balance of P 60,000. During 2021, Cook provided doubtful accounts expense at P 128,000, derecognized in accounting books worthless accounts of P 92,000, and unexpectedly recovered P 24,000 of bad debts written off two years ago. QUESTION: What would be the allowance for doubtful accounts at December 31, 2021?

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 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
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