Walkway Company started business at the beginning of the current year. The entity established an...
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Accounting
Walkway Company started business at the beginning of the current year. The entity established an allowance for bad debts estimated at 5% of credit sales. During the year, the entity had written off P25,000 of uncollectible accounts. Analysis of the accounts showed that merchandise purchased in the current year amounted to P4,500,000 and ending merchandise inventory was P750,000. Goods were sold at 40% above cost. Sales on account amounted to 80% of total sales. Total collections from customers, excluding cash sales amounted to P3,000,000. What is the cost of goods sold? What is the balance of accounts receivable at year-end? What is the balance of allowance for doubtful accounts at year-end?
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