An Analysis and Aging of the Accounts Receivable of Downs

question 225

Multiple Choice

An analysis and aging of the accounts receivable of Downs Company at December 31 revealed the following data: $\begin{array}{lrr} \text { Accounts Receivable } &\$800,000\\ \text { Allowance for Doubtful Accounts per books } &\\ \text { before adjustment (Cr.) } &50,000\\ \text {Amounts expected to become uncollectible } &53,000\\\end{array}$

The cash realizable value of the accounts receivable at December 31 after adjustment is:

• A) $694000.
• B) $747000.
• C) $750000.
• D) $794000.

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Definitions:

Legal Custody

Custody of a child that confers on the parent the right to make major decisions about the child's life without consulting the other parent.

Major Decisions

Significant determinations or resolutions made, often in the context of business or personal choices, with long-term impacts.

Rehabilitative Alimony

A type of spousal support intended to provide financial assistance while the receiving spouse gains employment or education necessary to become self-supporting.

Ex-Spouses

Individuals who were previously married to each other and have legally dissolved their marriage relationship.