A Company That Uses the Allowance Method, Writes-Off a Receivable

question 192

Multiple Choice

A company that uses the allowance method, writes-off a receivable of $7000. Prior to the journal entry, the credit balance in the Allowance for Uncollectible Accounts was $18,432 and Accounts Receivable were $2,001,000. After the entry to write-off the receivable is made, the net realizable value of Accounts Receivable will be:

• A)$1,975,568.
• B)$1,982,568.
• C)$1,994,000.
• D)$2,001,000.

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Definitions:

Percussion

A diagnostic technique in medicine involving tapping on a surface to determine the underlying structure, or a category of musical instruments that produce sound by being struck.

Density

The measure of mass per unit volume of a substance.

Flexibility Assessment

The evaluation of the range of motion around a joint or the ability of a joint to move freely without pain.

Isolation Precautions

Measures taken to prevent the spread of infections by isolating patients who are infectious.