Goyo uses the allowance account for uncollectible trade accounts receivable. The allowance is based upon 3% of past due accounts (over 120 days) and 1% of current accounts as of

Goyo uses the allowance account for uncollectible trade accounts receivable. The allowance is based upon 3% of past due accounts (over 120 days) and 1% of current accounts as of the close of each month. Due to changing economic conditions and climate, the number of past-due accounts has increased insignificantly, and management has decided to increase the percentage based on past due accounts to 5%. The following balances are available: As of Nov. 30, 20×3 Debit Credit Accounts Receivable P780,000 – Past due accounts (included in A/R) 24,000 – Allowance for Doubtful Accounts – P56,000 As of Dec. 31, 20×3 Debit Credit Accounts Receivable P860,000 – Past due accounts (included in A/R) 60,000 – Allowance for Doubtful Accounts 18,000 – I NEED ADJUSTMENTS THANKSSS

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