Table 9-5
the Ritchie Company Gathered the Following Information Pertaining

question 101

Multiple Choice

Table 9-5
The Ritchie Company gathered the following information pertaining to its year ended December 31, 2019, prior to any adjustments:
$$\begin{array} { | l | r | r | } \hline \text { Net credit sales for the year } & \$ 780,000 & \\\hline \text { Accounts receivable, Dec. } 31,2019 & 170,000 & \\\hline \text { Allowance for doubtful accounts, } & & \\\text { December } 31,2019 & 3,200 & \mathrm { Cr } . \\\hline & & \\\hline\end{array}$$ Aging of accounts receivable at December 31, 2019:
$$\begin{array} { | l | r | } \hline 1 - 30 \text { days } & \$ 95,000 \\\hline 31 - 60 \text { days } & 38,000 \\\hline 61 - 90 \text { days } & 23,000 \\\hline \text { Over } 90 \text { days } & 14,000 \\\hline \text { Total } & \$ 170,000 \\\hline\end{array}$$
-Refer to Table 9-5. Assume Ritchie uses the aging-of-accounts-receivable method for estimating uncollectible accounts. Ritchie estimates that bad-debt expense will be aged as follows: 2.5% for 1-30 days; 4.5% for 31-60 days; 7.5% for 61-90 days; and 22.5% for over 90 days. After the adjustment for uncollectible accounts is made, the net realizable value of the accounts receivable will be:

• A)$157,840.
• B)$161,040.
• C)$170,000.
• D)$164,240.

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Definitions:

Birth Weights

Refers to the weight of a baby at the time of birth, an important factor in neonatal and future health.

Infants

Young babies, typically under one year old, in the early stages of development.

Ounces

Ounces are a unit of weight commonly used in the United States' customary and British imperial systems, equal to one-sixteenth of a pound.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean.