Solution-What amount should be reported as allowance

What amount should be reported as allowance

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Question - Sanji Company sells directly to retail customers. On January 1, 2020, the balance of the accounts receivable was P2, 070,000 while the allowance for doubtful accounts was a credit of P78, 000. The ff. data are gathered:

	Credit Sales	Writeoffs	Recoveries
2017	11,100,000	260,000	22,000
2018	12,250,000	295,000	37,000
2019	14,650,000	300,000	36,000
2020	15,000,000	310,000	42,000

Doubtful accounts are provided for as a percentage of credit sales. The accountant calculates the percentage annually by using the experience of the three years prior to the current year.

What amount should be reported as allowance for doubtful accounts on December 31, 2020?

Reference no: EM132589028

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What amount should be reported as allowance

Reference no: EM132589028

Reference no: EM132589028

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