Vivian, Inc Had Net Sales in 2011 of €700,000

question 105

Multiple Choice

Vivian, Inc had net sales in 2011 of €700,000.At December 31, 2010, before adjusting entries, the balances in selected accounts were: accounts receivable €125,000 debit, and allowance for doubtful accounts €1,200 debit.Vivian estimates that 2% of its net accounts receivable will prove to be uncollectable.What is the cash realizable value of the receivables reported on the statement of financial position at December 31, 2011?

• A)€112,200
• B)€122,500
• C)€111,000
• D)€109,800

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Definitions:

Manifest Needs Theory

A psychological theory suggesting that certain human needs are openly communicated and visible, influencing behavior in different situations.

Affiliation

The need or desire to form connections with others, often driven by a sense of belonging or social identity.

Valence

In psychology, the intrinsic attractiveness or averseness of an event, object, or situation.

Frustration-Regression Principle

A concept from the field of psychology suggesting that when an individual's progress toward a goal is blocked, they may regress to previously held behaviors.