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:

Leader-Member Exchange

A theory describing the dyadic relationship between leaders and followers, focusing on the quality of their interactions and its impact on performance.

Behavioral Approach

A perspective in psychology focusing on observable behaviors and the ways they're learned.

Reassuring Authority Figure

An individual in a position of power who instills confidence and calmness through supportive and positive guidance.

Vulnerable

describes a state of being open to emotional, physical, or psychological harm or attack due to lack of protection or strength.