A Company's Accounts Receivable Balance After Posting Net Collections from Customers

question 129

Multiple Choice

A company's accounts receivable balance after posting net collections from customers for the current year is $150,000. Management feels that uncollected accounts should be based on the following aging of accounts receivable and uncollected percentages. There are $100,000 that are 1-30 past due at 2% and $50,000 that are 31 to 60 days past due at 10%. The net realizable value of the accounts receivable is

• A)$147,500
• B)$148,000
• C)$150,000
• D)$143,000

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Definitions:

Habitat Island

A patch of land, typically surrounded by a contrasting landscape, that serves as a refuge for species and maintains biodiversity.

National Park

A protected area of natural importance, established by a government, aimed at conservation and offering recreation opportunities.

Sustainable Development

Progress which satisfies current requirements without hindering future generations from fulfilling their necessities.

Human Population Growth

The increase in the number of individuals in a human population, often discussed in terms of its impact on the environment and resources.