Sports Shop Reports Net Accounts Receivables on Its December 31

question 55

Multiple Choice

Sports Shop reports net accounts receivables on its December 31, 2019, balance sheet at $105,460. The allowance for doubtful accounts has a normal balance of $3,200 after adjustment. What is the ending balance in the accounts receivable account?

• A)$102,260
• B)$105,460
• C)$108,660
• D)$99,060

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Definitions:

Investment Opportunity

A chance to put money into ventures that are expected to yield returns or profits in the future.

Combined Margin

A financial metric that combines various margins (gross, operating, net) to provide insight into a company’s profitability.

Return On Investment

A criterion for measuring the success or financial gain of an investment, by calculating the ratio of net profit to the investment's price.

Margin

The difference between the selling price of a product and the cost associated with producing it.