Problem
Adjust DoIt Company reported the following unadjusted balances at year-end:
Debit Credit
Accounts Receivable P8,000,0
00
Allowance for doubtful
accounts
16,000
Net credit sales 7,500,000
The company estimates that 3% of the net credit sales would become uncollectible.
What amount should be reported as doubtful accounts expense for the current year?