Examlex

Solved

In the First Year of Operations, Ralph's Repair Service Recognized

question 21

Essay

In the first year of operations, Ralph's Repair Service recognized $480,000 of service revenue earned on account. The ending accounts receivable balance was $88,000. Ralph estimates that 2% of sales on account will not be collected. During the year, Ralph wrote off a $200 receivable that was determined to be uncollectible. Assume there were no other transactions affecting accounts receivable.
Required:What amount of cash was collected in Year 1?What amount of uncollectible accounts expense was recognized in Year 1?What will be Ralph's net realizable value of receivables on the December 31, Year 1 balance sheet?


Definitions:

Reasoning Processes

Cognitive operations used in thinking, understanding, and forming judgments or conclusions from premises or evidence.

Cognitive Dissonance Theory

A theory which suggests that individuals experience discomfort, termed dissonance, when holding two or more conflicting cognitions, leading them to change their attitudes, beliefs, or behaviors.

Dating Service

A business or platform that facilitates introductions between individuals for the purpose of finding romantic partners.

Collectivist Cultures

Societies that prioritize the needs and goals of the group over individual desires or ambitions.

Related Questions