Before the Accounts Are Adjusted and Closed at the End

question 33

Multiple Choice

Before the accounts are adjusted and closed at the end of the year,Accounts Receivable has a normal balance of $210,000 and Allowance for Doubtful Accounts has a credit balance $3,000.What is the net realizable value of the accounts receivable?

• A)$213,000
• B)$207,000
• C)$210,000
• D)$200,000

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Definitions:

Variable Costing

A bookkeeping procedure that adds only variable production fees (including direct materials, direct labor, and variable manufacturing overhead) into the costs associated with products.

Unit Product Cost

The total cost to produce a single unit of product, including direct materials, direct labor, and allocated overhead.

Direct Labor Cost

The expense of labor that can be directly attributed to the production of goods or services.

Net Operating Income

A company's revenue minus its operational direct and indirect costs, excluding taxes and interest.