On January 1, 2020, the balances of Jennifer Cakes and Pastries accounts receivable and allowance for doubtful accounts amounted to P50,000 and P15,000, respectively. During the year, the Company sold P500,000 worth of pastries and P800,000 worth of cakes on credit. The collections on these amounted to 80% for pastries and 60% for cakes. At year-end, the Company determined that the beginning balance of the accounts receivable was deemed uncollectible and hence, written off. Recoveries and collections of previously written off amounted to P10,000. The Company’s policy is to recognize 5% of its credit sales as doubtful accounts. On December 31, 2020, what is the net realizable value of Jennifer Cakes and Pastries’ accounts receivable?. Single choice. P355,000 P380,000 P365,000 P390,000
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