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What is the required allowance for doubtful accounts on December 31, 2018? From inception of operations, UNIVERSE Company provided for uncollectible accounts expense under the allowance method. Provisions were made monthly at 2% of credit sales, bad debts written off were charged to the allowance account and recoveries of bad debts previously written off were credited to the allowance account No year-end adjustments to the allowance account were made. The allowance for doubtful account was P120,000 on January 1, 2018. During the current year, credit sales totaled P9,000,000, interim provisions for doubtful accounts were made at 2% of credit sales, P90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to v 15,000. The entity prepared an aging of accounts receivable for the first time on December 31, 2018. Classification Balance Uncollectible November - December 2,000,000 2% July - October 600,000 10% January - June 400,000 25% Prior to January 1, 2018 200,000 75% Based on the review of collectibility of the account balances in the prior to January 1, 2018 aging category, additional accounts totaling P60,000 are to be written off on December 31, 2018, Effective with the year ended December 31, 2018, the entity adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year end aging analysis of accounts receivable

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