Collision Corporation
Data for Collision Corporation for the Year $~~~~~~$

question 66

Multiple Choice

Collision Corporation
Data for Collision Corporation for the year ended December 31, 2012, are presented below.
Credit Sales $~~~~~~$ $\$ 2,000,000$
Sales retuns and allowances $~~~~~~$ 40,000
Accounts receivable (December 31, 2012) $~~~~~~$ 610,000
Allowance for bad debts
$~~$ (Before adjustment at December 31, 2012) $~~~~~~$ 15,000
Estimated amount of uncollected accounts based on aging analysis $~~~~~~$ 55,000
-Refer to the information provided for Collision Corporation. If Collision uses the aging of accounts receivable approach to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?

• A) $610,000
• B) $555,000
• C) $595,000
• D) $570,000

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Definitions:

Cognitive Conflict

A situation arising from the encounter of differing viewpoints or information, leading to a reevaluation of existing beliefs or knowledge.

Equilibration

The process in cognitive development described by Piaget where children balance assimilation and accommodation to create stable understanding.

Disequilibrium

Disequilibrium refers to a state of imbalance or lack of equilibrium, often used in contexts ranging from physical stability to economic conditions.

Accommodation

In cognitive development, the process of altering one's existing schemas or ways of thinking in response to new information.