Reference no: EM132915502

The financial position of Tungpalan Wood Products Co. Shows the accounts receivable balance at December 31, 2018 as follows:

Accounts receivable -Trade.....................P45,000
Allowance for doubtful accounts ............ 900
Balance of AR....................................P41,100

During 2019, transactions relating to the accounts were as follows:

• Sales on accounts, P480,000
• Cash received from collections of current receivables totalled P392,000, after discounts of P8,000 were allowed for prompt payment.
• Customers' accounts of P2,000 were ascertained to be worthless and were written off.
• Bad accounts previously written off prior to 2016 amounting to P500 were recovered.
• The company decided to provide P2,300 for doubtful accounts by a journal entry at the end of the year.
• Accounts receivable of P70,000 have been pledged to a local bank on a loan of P40,000. Collections of P15,000 were made on these receivables ( not included in the collections previously given) and applied as partial payment to the loan.

Problem 1: How much is the estimated realizable value of the accounts receivable at December 31, 2019?