Professional Documents
Culture Documents
Problem 1
Orr Company prepared an aging of accounts receivable on December 31,2011 and determined that the
net realizable value of the accounts receivable was P2,500,000. Additional information is available as
follows:
For the year ended December 31,2011, what amount should be recognized as doubtful account
expense? P100,000
Problem 2
Seiko Company reported the following balances after adjustment at the end of 2011 and 2010
12/31/2011 12/31/2010
Accounts receivable P5,250,000 P4,800,000
Net realizable value 5,100,000 4,725,000
During 2011, Seiko wrote off accounts totaling P160,000 and collected P40,000 on accounts written off
in previous years. What amount should be recognized as doubtful account expense for the year ended
December 31, 2011? P195,000
Problem 3
The following information pertains to Tara Company’s accounts receivable on December 31, 2011
During 2011, Tara wrote off P70,000 in accounts receivable and recovered P40,000 that had been
written off in prior years. Tara’s January 1, 2011, allowance for uncollectible accounts was P100,000
Under the aging method, what amount of allowance for uncollectible accounts should Tara report on
December 31, 2011? P90,000