Question

Orr Company prepared an aging of accounts receivable on December 31 and determined that the net realizable value of the accounts receivable was P2,500,000. Allowance for doubtful accounts on January 1 was P280,000. Accounts written off as uncollectible were P230,000. Accounts receivable on December 31 were P2,700,000. Uncollectible accounts recovery was P50,000. What amount should be recognized as doubtful accounts expense for the current year?

Name: orr company prepared an aging of accounts receivable o december 31 and determined that the net realizable value of the accounts receivable was p2500000 allowance for doubtful accounts on jan 07202
Uploaded: 2022-03-02T17:39:42-08:00
Duration: 3 min 46 s
Channel: Manasvee Singh
Description: orr company prepared an aging of accounts receivable o december 31 and determined that the net realizable value of the accounts receivable was p2500000 allowance for doubtful accounts on jan 07202

          Orr Company prepared an aging of accounts receivable on December 31 and determined that the net realizable value of the accounts receivable was P2,500,000. Allowance for doubtful accounts on January 1 was P280,000. Accounts written off as uncollectible were P230,000. Accounts receivable on December 31 were P2,700,000. Uncollectible accounts recovery was P50,000.

What amount should be recognized as doubtful accounts expense for the current year?

Added by Esther T.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Manasvee Singh

03/02/2022

Step 1

Beginning balance of allowance for doubtful accounts = P280,000 Accounts written off as uncollectible = P230,000 Uncollectible accounts recovery = P50,000 Ending balance of allowance for doubtful accounts = Beginning balance + Accounts written off - Uncollectible Show more…

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Orr Company prepared an aging of accounts receivable on December 31 and determined that the net realizable value of the accounts receivable was P2,500,000. Allowance for doubtful accounts on January 1 was P280,000. Accounts written off as uncollectible were P230,000. Accounts receivable on December 31 were P2,700,000. Uncollectible accounts recovery was P50,000. What amount should be recognized as doubtful accounts expense for the current year?