AUDIT OF RECEIVABLE ACCOUNTS AND ALLOWANCE FOR DOUBTFUL ACCOUNTS The company's policy is to allow for dubious accounts as follows: Less than three months P2,500,960 one percent 843,200 5% in 3 to 6 months Over a 6-month period, 274,500 10% P3,618,660 in total An examination of the accounts receivable schedule revealed that certain accounts that had been overdue for more than a year and totaled P152,460 should be wiped off. Deduction for questionable accounts A. P110, 360 B. P152,640 C. P130,316 D. P88,217

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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AUDIT OF RECEIVABLE ACCOUNTS AND ALLOWANCE FOR DOUBTFUL ACCOUNTS
The company's policy is to allow for dubious accounts as follows:
Less than three months P2,500,960 one percent
843,200 5% in 3 to 6 months
Over a 6-month period, 274,500 10%
P3,618,660 in total
An examination of the accounts receivable schedule revealed that certain accounts
that had been overdue for more than a year and totaled P152,460 should be wiped off.
Deduction for questionable accounts
A. P110, 360
B. P152,640
C. P130,316
D. P88,217
Transcribed Image Text:AUDIT OF RECEIVABLE ACCOUNTS AND ALLOWANCE FOR DOUBTFUL ACCOUNTS The company's policy is to allow for dubious accounts as follows: Less than three months P2,500,960 one percent 843,200 5% in 3 to 6 months Over a 6-month period, 274,500 10% P3,618,660 in total An examination of the accounts receivable schedule revealed that certain accounts that had been overdue for more than a year and totaled P152,460 should be wiped off. Deduction for questionable accounts A. P110, 360 B. P152,640 C. P130,316 D. P88,217
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