Solution-What is the net realizable value of accounts

What is the net realizable value of accounts receivable

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Question - Glee Company sells directly to customers. On January 1, 2013, the balance of account receivable is P2,070,000 and the allowance for doubtful accounts P40,000.

The following data are available:

	Credit Sales	Write Offs	Recoveries
2017	1,100,000	26,000	2,000
2018	2,250,000	29,000	3,000
2019	4,650,000	30,000	3,200
2020	4,000,000	31,000	4,000

The collections from customers during 2020 totaled 3.5 million pesos, excluding recoveries. Doubtful accounts are provided for as a percentage of accounts receivable. The entity estimates 2% of ending balance of accounts receivable in 2020 is uncollectible.

Required -

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

b. What is the net realizable value of accounts receivable on December 31, 2020?

c. How much is the doubtful accounts expense in 2020?

Reference no: EM132799894

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What is the net realizable value of accounts receivable

Reference no: EM132799894

Reference no: EM132799894

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