debts in the previous 2 years. Therefore, the bad debts on 2005 sales of P6,200 andP1,000 are about 92% of the total bad debts expected on 2005 sales.f P19,900 + P210,000 - P200 - P14,200 - P178,800 - P300 - P700 - P6,200 = P29,2. Bad debts estimated as a percentage of year-end accounts receivableP29,500 + P235,000 - P300 - P19,500 - P400 - P1,000 - P200,= P43,P43,300 x 0 = P12,340, or approximately P12,300. Criteria forrecognition of bad debts or impairment of receivables under PAS 39should be applied.
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