Accounts Receivable Has a Balance of $16 000 and the Allowance

question 30

Multiple Choice

Accounts receivable has a balance of $16 000 and the Allowance for doubtful debts has a credit balance of $1 700. What is Net accounts receivable before and after a $60 account receivable is written off?

• A)$16 000 before and $15 940 after
• B)$14 300 before and $14 300 after
• C)$14 300 before and $14 240 after
• D)$16 000 before and $16 000 after

---

Definitions:

Legal Terminology

The specialized language used that relates to laws or the legal process, including terms of art, phrases, and concepts.

Sufficiency of Consideration

The legal principle that the value exchanged in a contract must be both legally sufficient and something of value, in order for the contract to be enforceable.

Full Settlement

An agreement or payment that completely resolves a claim, debt, or dispute, leaving no further obligations for any of the involved parties.

Additional Consideration

Extra compensation or benefit that is promised to be given in a contract, in addition to what was originally agreed.