Solve. -A Brother and Sister Split the $922,500 from the Sale

question 70

Multiple Choice

Solve.
-A brother and sister split the $922,500 from the sale of their parent's house. According to the will, the sister was to receive 25% more than her brother, for having managed the property. How much money did the sister
Receive?

• A)$512,500
• B)$3,690,000
• C)$230,625
• D)$410,000

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Definitions:

Necessary Cash

The minimum amount of cash required by a company to carry out its day-to-day operations.

Contra Asset Account

An account on a company's balance sheet representing deductions from the gross amount of an asset, such as accumulated depreciation on fixed assets.

Allowance for Doubtful Accounts

An accounting method used to estimate the portion of a company's receivables that may not be collected, reducing the accounts receivable balance accordingly.

Uncollectible Accounts

Uncollectible accounts are receivables that a company deems uncollectable and likely will not be recovered, often written off as a bad debt expense.