On January 1, 2021, the books of the Bart Company showed a credit balance in the allowance for doubtful accounts of P16,700. During the year, P13,000 of accounts were written off as uncollectible. Based on prior experience, Bart estimates that 3% of the ending accounts receivable balance will prove to be uncollectible. The accounts receivable balance as of December 31, 2021, is P720,000. The uncollectible accounts expense for 2021 statement of income is:

On January 1, 2021, the books of the Bart Company showed a credit balance in the allowance for doubtful accounts of P16,700. During the year, P13,000 of accounts were written off as uncollectible. Based on prior experience, Bart estimates that 3% of the ending accounts receivable balance will prove to be uncollectible. The accounts receivable balance as of December 31, 2021, is P720,000. The uncollectible accounts expense for 2021 statement of income is:

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 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
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