Cortez Co Had Accounts Receivable Totalling $450,000 and an Allowance for for Doubtful

question 80

Multiple Choice

Cortez Co. had accounts receivable totalling $450,000 and an allowance for doubtful accounts with a balance of $5,000 on June 1, 2018. On June 2 Cortez wrote off $2,400 of uncollectible accounts. The net carrying value of accounts receivable before and after the write-off was

• A) Before $450,000 | After $447,600
• B) Before $445,000 | After $445,000
• C) Before $445,000 | After $442,600
• D) Before $450,000 | After $445,000
• E) Before $450,000 | After $450,000

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Definitions:

Private Enterprise System

An economic system where private individuals or groups, rather than the state, own and operate businesses.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like location, purchase volume, or customer segment.

Fair Competition

Practices that ensure an equitable and honest competitive environment in the marketplace.

Relationship Management

The strategy and practices of maintaining and improving relationships between an organization and its clients, customers, or other key stakeholders.