What amount should be reported as doubtful accounts

Assignment Help Financial Accounting
Reference no: EM132864458

Question - Alfred company operates in an industry that has a high rate of bad debts. On December 31, 2015, the accounts receivable balance was P8,000,000 and the allowance for doubtful accounts on January 1, 2015 was 1,000,000. The year-end balance reported for the allowance for doubtful accounts is based on the following schedule:

Time Outstanding

Accounts receivable

Percent uncollectible

Under 30 days

5,000,000

10%

31- 80 days

1,500,000

20%

181- 360 days

1,000,000

50%

More than one year

500,000

100%

During the year, accounts of P400,000 were written off and recoveries of previously written off accounts totaled 100,000. What amount should be reported as doubtful accounts expense for 2015?

Reference no: EM132864458

Questions Cloud

Quality control systems : Compare and contrast ISO900:2000 and Six Sigma in terms of their differences and similarities.
Compute the net cash provided by operating activities : Purchased of financial assets at amortized cost 300,000 and Increase in inventory 900,000. Compute the net cash provided by operating activities
Several statistical tests : Several statistical tests have a way to measure effect size.
Favoritism-politics and comparative advantage : Discussion of free trade agreements. What are they; whether they are beneficial to trade; whether they violate the rules of the GATT, etc.
What amount should be reported as doubtful accounts : During the year, accounts of P400,000 were written off. What amount should be reported as doubtful accounts expense for 2015
Tremendous role in shaping economy : Transportation has played a tremendous role in shaping the economy and social structure of the United States.
Ethics-how would you respond to his propositions : How would you respond to his propositions? How would you use this knowledge as a global leader?
Expectations of staff during an assessment site visit : List two (2) expectations of staff during an assessment site visit (i.e. what are they expected to do during the visit)
Enter the united states by bus : As a late mover into the US intercity bus market, what advantages and disadvantages does Megabus have?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd