Tara Company provided the following information pertaining to accounts receivable at year-end: Days outstanding Estimated Атount Estimated uncollectible. 0 - 60 1,200,000 900,000 1,000,000 1% 2% 60,000 61 120 Over 120 3,100,000 During the current year, the entity wrote off P70,000 in accounts receivable and recovered P40,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P100,000. Under the aging method, what amount of allowance for uncollectible accounts should be reported at year-end?

Tara Company provided the following information pertaining to accounts receivable at year-end: Days outstanding Estimated Атount Estimated uncollectible. 0 - 60 1,200,000 900,000 1,000,000 1% 2% 60,000 61 120 Over 120 3,100,000 During the current year, the entity wrote off P70,000 in accounts receivable and recovered P40,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P100,000. Under the aging method, what amount of allowance for uncollectible accounts should be reported at year-end?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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