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CPA Inc. is an ecommerce company selling techy workspace docks at 10/10, 5/20, n/30 and it provides for uncollectible accounts based on aging of receivables at year-end. The balance of selected accounts taken from the December 31, 2020 statement of financial position are as follows: Accounts Receivable – P10,800,000 Allowance for Bad Debts – P270,000 The following transactions (in summary) affecting accounts receivable occurred during the year ended December 31, 2021: Sales on account 20,180,000 21,960,000 Cash received from customers Cash received includes the following: Customers paying within the 10-day discount period Customers paying within the 20-day discount period Recovery of accounts written off Customers paying beyond the discount period 11,700,000 3,800,000 106,000 ? Accounts receivable written off as worthless 22,000 512,000 Credit memoranda for sales returns An aging of the accounts receivables and uncollectible accounts on December 31, 2021 revealed the following: Amount 1,150,000 Probability of Non-collection Age Less than 30 days 31-90 days 91-120 days More than 120 days 5% 2,400,000 8% 563,000 10% Balance 27% What are the balances of accounts receivable, related allowance account, and bad debts expense on December 31, 2021?

CPA Inc. is an ecommerce company selling techy workspace docks at 10/10, 5/20, n/30 and it provides for uncollectible accounts based on aging of receivables at year-end. The balance of selected accounts taken from the December 31, 2020 statement of financial position are as follows: Accounts Receivable – P10,800,000 Allowance for Bad Debts – P270,000 The following transactions (in summary) affecting accounts receivable occurred during the year ended December 31, 2021: Sales on account 20,180,000 21,960,000 Cash received from customers Cash received includes the following: Customers paying within the 10-day discount period Customers paying within the 20-day discount period Recovery of accounts written off Customers paying beyond the discount period 11,700,000 3,800,000 106,000 ? Accounts receivable written off as worthless 22,000 512,000 Credit memoranda for sales returns An aging of the accounts receivables and uncollectible accounts on December 31, 2021 revealed the following: Amount 1,150,000 Probability of Non-collection Age Less than 30 days 31-90 days 91-120 days More than 120 days 5% 2,400,000 8% 563,000 10% Balance 27% What are the balances of accounts receivable, related allowance account, and bad debts expense on December 31, 2021?

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 12EB: Clovis Enterprises reports $845,500 in credit sales for 2018 and $933,000 in 2019. It has a $758,000...
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37.

Choices:

a. P7,092,000, P1,110,130, and P756,130
b. P9,616,000, P1,791,610, and P1,437,610
c. P9,616,000, P1,653,370, and P756,130
d. P9,104,000, P1,653,370, and P1,299,370
CPA Inc. is an ecommerce company selling techy workspace docks at 10/10, 5/20, n/30 and it provides for uncollectible accounts based on aging of receivables at year-end. The balance of selected accounts taken from the December 31, 2020 statement of financial position are as follows: Accounts Receivable – P10,800,000 Allowance for Bad Debts – P270,000 The following transactions (in summary) affecting accounts receivable occurred during the year ended December 31, 2021: Sales on account 20,180,000 Cash received from customers 21,960,000 Cash received includes the following: Customers paying within the 10-day discount period Customers paying within the 20-day discount period Recovery of accounts written off Customers paying beyond the discount period 11,700,000 3,800,000 106,000 ? Accounts receivable written off as worthless Credit memoranda for sales returns 22,000 512,000 An aging of the accounts receivables and uncollectible accounts on December 31, 2021 revealed the following: Probability of Non-collection Age Less than 30 days 31-90 days 91-120 days More than 120 days Amount 1,150,000 2,400,000 563,000 Balance 5% 8% 10% 27% What are the balances of accounts receivable, related allowance account, and bad debts expense on December 31, 2021?
Transcribed Image Text:CPA Inc. is an ecommerce company selling techy workspace docks at 10/10, 5/20, n/30 and it provides for uncollectible accounts based on aging of receivables at year-end. The balance of selected accounts taken from the December 31, 2020 statement of financial position are as follows: Accounts Receivable – P10,800,000 Allowance for Bad Debts – P270,000 The following transactions (in summary) affecting accounts receivable occurred during the year ended December 31, 2021: Sales on account 20,180,000 Cash received from customers 21,960,000 Cash received includes the following: Customers paying within the 10-day discount period Customers paying within the 20-day discount period Recovery of accounts written off Customers paying beyond the discount period 11,700,000 3,800,000 106,000 ? Accounts receivable written off as worthless Credit memoranda for sales returns 22,000 512,000 An aging of the accounts receivables and uncollectible accounts on December 31, 2021 revealed the following: Probability of Non-collection Age Less than 30 days 31-90 days 91-120 days More than 120 days Amount 1,150,000 2,400,000 563,000 Balance 5% 8% 10% 27% What are the balances of accounts receivable, related allowance account, and bad debts expense on December 31, 2021?
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