Allowance for Doubtful

Accounts Exercise
Problem 1
Mill Company’s allowance for doubtful account was P1,000,000 at the
end of 2016 and P900,00 at the end of 2015.
For the year ended December 31, 2016, the entity reported doubtful
accounts expense of P160,000 in the income statement.
What amount was debited to the appropriate account to write off
uncollectible accounts
Problem 2
Tara Company provided the following information pertaining to accounts receivable
on December 31, 2016:
Days Outstanding Est Amount Est Uncollectible
0-160 1200,000 1%
61-120 900,000 2%
Over 120 1000,000 60,000

During the year, the entity wrote off P70,000 in accounts receivable and recovered
P40,000 that had been written off in prior years.
On January 1, 2016, the allowance for the uncollectible accounts was P100,000.
Under the aging method, what amount of allowance for uncollectible accounts
should be reported on December 31, 2016?
Marian Company used the allowance method of accounting for bad debts.
The following summary schedule was prepared from an aging of accounts receivable outstanding on December
31:
Number of days outstanding Amount Probability of Collection
0-30 days P5,000,000 .98
31-60 days 2,000,000 .90
Over 60 days 1,000,000 .80
The following additional information is available for the current year:
Net credit sales for the year 40,000,000
Allowance for doubtful accounts:
Beg Bal 450,000 (CR.)
Bal before adjustment (ending) 20,000 (dr.)
The entity based the estimate of doubtful accounts on the aging of Accounts Receivable.
What amount should be recognized as doubtful accounts expense for the current year?
Manchester Company provided the following accounts abstracted from
the unadjusted trial balance at year end:
Debit Credit
AR 5,000,000
Allowance for doubtful accounts 40,000
Net Credit Sales 20,000,000
The entity estimated that 3% of the gross accounts receivable will
become uncollectible.
What amount should be recognized as doubtful accounts expense for
the current year?