03 Activity 1
1. The company estimated bad debt to be 1.5% of net credit sales.
Bad debt expense 15,000
Allowance for Uncollectible Accounts 15,000
2. J&K Company performs an aging analysis on December 31, 201A, which indicates an
estimate of P12, 000 of uncollectible accounts.
Accounts Receivable 180,000
Allowance for Uncollectible Accounts 12,000
3. The company wants to maintain the Allowance for Doubtful Accounts at 4% of Gross
Accounts Receivable.
Allowance for Doubtful Accounts 7,200
Accounts Receivable 7,200
4. To obtain additional cash, J&K factors, without recourse, P40, 000 of accounts
receivable with Regine Finance Company. The finance charge is 10% of the amount
factored.
Cash 4,000
Accounts Receivable 4,000
1. The company estimated bad debt to be 1.5% of net credit sales.
Bad debt expense 15,000
Allowance for Uncollectible Accounts 15,000
2. J&K Company performs an aging analysis on December 31, 201A, which indicates an
estimate of P12, 000 of uncollectible accounts.
Accounts Receivable 180,000
Allowance for Uncollectible Accounts 12,000
3. The company wants to maintain the Allowance for Doubtful Accounts at 4% of Gross
Accounts Receivable.
Allowance for Doubtful Accounts 7,200
Accounts Receivable 7,200
4. To obtain additional cash, J&K factors, without recourse, P40, 000 of accounts
receivable with Regine Finance Company. The finance charge is 10% of the amount
factored.
Cash 4,000
Accounts Receivable 4,000
