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Question 39
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Lady Bug
Company provided the following information for the current year: 
Allowance for doubtful accounts January 1 P   180,000

Sales 8,500,000

Sales returns and allowances 700,000

Sales discounts 300,000

Accounts written off as uncollectible 250,000

 The
entity provided for doubtful accounts expense at the rate of 3% of net sales.
What is the allowance for doubtful
accounts at year-end?

Answer format:

1,250,000

Answer: 155,000

Question 40
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Manika Monika Company which has a calendar year

accounting period, purchased a new
machine for P2,000,000 on April 1, 2014. At
that time, the entity expected to use the
machine for nine years and then sell
it for P200,000. The machine was sold for P1,100,000
on September 30, 2019. The
entity uses straight-line method and do not recognize
depreciation in the year
of acquisition. Instead, the company recognizes full depreciation in
the year
of disposal. What amount should be recognized as gain on disposal on September
30, 2019?

Answer format:
1,250,000

Answer: 100,000

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 Question 41
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Matrix
company computed a pretax accounting income of 7,500,000 for its first year of
operations ended Dec. 31, 2018.  In
preparing the income tax return for 2018, the following
differences are noted
between accounting income and taxable income.
Nondeductible
expenses                                                                                                                     
    300,000

Nontaxable
revenue                                                                                                                               
  750,000
Unearned
income reported In Financial statement (expected to be earned in 2019)           
 1,500,000

              Provision for doubtful accounts                                              

                                        
        150,000
              Income tax rate                                                                                             
                                          30%

What
is the current tax expense?

Answer format:

1,250,000

Answer: 2,160,000

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