The December 31, 2012 adjusted trial balance of Accenture Company shows the

following:

Accounts receivable
Allowance for bad debts

Debit
P50,000

Credit
P 2,000

Additional information:

Cash sales of the company represents 10% of gross sales.

90% of the credit sales customers do not take advantage of the 2/10, n/30
terms.
It is expected that cash discount of P300 will be taken on accounts receivable
outstanding at December 31, 2013.
Sales returns in 2013 amounted to P20,000. All returns were from charge sales.
During 2013, accounts totaling to P2,200 were written off as uncollectible; bad
debt recoveries during the year amounted to P150.
The allowance for bad debts is adjusted so that it represents certain percentage
of the outstanding accounts receivable at year end. The required percentage at
December 31, 2013 is 150% of the rate used on December 31, 2012.
QUESTIONS:
Based on the above and the result of your audit, determine the following:
1. The accounts receivable as of December 31, 2013 is
a. P150,000
b. P16,667
c. P15,000

d. P122,200

2. The allowance for doubtful accounts as of December 31, 2013 is

a. P1,000
b. P9,000
c. P6,000
d. P7,332
3. The net realizable value of accounts receivable as of December 31, 2013 is
a. P15,367
b. P143,700
c. P140,700
d. P114,568

4. The doubtful account expense for the year 2013 is

a. P9,050
b. P1,050
c. P6,050

d. P7,382

5. A company uses the allowance method for recognizing doubtful accounts.

The entry to record the writeoff of a specific uncollectible account
a. Affects neither net income nor working capital
b. Affects neither net income nor accounts receivable
c. Decreases both net income and working capital
d. Decreases both net income and accounts receivable