Celtics Company had the following data relating to its accounts receivable. Accounts Receivable, December 31, 2022 P1,300,000 Credit sales for 2023 5,400,000 Collections from customers during 2023, including recoveries 4,750,000 Accounts written off on September 30, 2023 125,000 Recoveries of accounts previously written off in prior years 25,000 Estimated uncollectible receivables per aging, December 31, 2023 165,000 Question: 20. How much is Celtics Company's net accounts receivable at December 31, 2023? A. P1,660,000 B. P1,685,000 C. P1,825,000 D. P1,850,000
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Celtics Company had the following data relating to its accounts receivable.
Accounts Receivable, December 31, 2022 P1,300,000
Credit sales for 2023 5,400,000
Collections from customers during 2023, including recoveries 4,750,000
Accounts written off on September 30, 2023 125,000
Recoveries of accounts previously written off in prior years 25,000
Estimated uncollectible receivables per aging, December 31, 2023 165,000
Question:
20. How much is Celtics Company's net accounts receivable at December 31, 2023?
A. P1,660,000
B. P1,685,000
C. P1,825,000
D. P1,850,000
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