Transcribed Image Text: Exercise 3 – 3 The adjusted trial balance of Thomas Company as of December 31, 2019 shows the following: Debit Credit Accounts Receivable P 1,000,000 Allowance for

Transcribed Image Text: Exercise 3 – 3
The adjusted trial balance of Thomas Company as of December 31, 2019 shows the
following:
Debit
Credit
Accounts Receivable
P 1,000,000
Allowance for Doubtful Accounts
P 40,000
Additional information:
a. Cash sales of the company represent 10% of gross sales. Total sales amounted to
P12,000,000.
b. Ninety percent of the credit sales customers did not take advantage of the 2/10, n/30 terms.
Total face value of accounts receivable collected during the year was P8,360,000.
c. Sales returns in 2020 amounted to P400,000. All returns were from charge sales.
d. During 2020, accounts totaling P40,000 were written off as uncollectible; bad debt recoveries
during the year amounted to P3,000.
24
e. The allowance for doubtful accounts is measured as follows:
Percentage of ending balance
Percent uncollectible
60
2
20
20
12
40
5
60
3
90
Based on the information given, answer the following:
1. Accounts Receivable balance as of December 31, 2020
2. Allowance for Doubtful Accounts, December 31, 2020
3. Net realizable value, December 31, 2020
4. Doubtful Accounts Expense for 2020.

Do you need us to help you on this or any other assignment?


Make an Order Now