Ace Computing Company on January 1, the Accounts Receivable and the Allowance for the Allowance

question 123

Multiple Choice

Ace Computing Company
On January 1, the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $40,000 and $1,500 respectively. During the year, the company reported $80,000 of credit sales. There were $500 of receivables written off as uncollected during the year. Cash collections of receivables amounted to $78,200. The company estimates that it will be unable to collect 4% of the year-end accounts receivable balance.
-Refer to the Ace Computing Company. The net realizable value of receivables appearing on the balance sheet will amount to

• A)$40,648.
• B)$39,648.
• C)$41,300.
• D)$39,800.

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Definitions:

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A phase in Freudian psychosexual development occurring from around age six to puberty, characterized by a decrease in overt sexual interests and the development of social and intellectual skills.

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A personal identification with culturally defined masculine traits, roles, and behaviors, which can vary across different societies and time periods.

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A Swiss psychiatrist and psychoanalyst who founded analytical psychology and introduced concepts such as the collective unconscious and archetypes.