The Data Presented Below Is for Mellon Corporation for the Year

question 72

Multiple Choice

The data presented below is for Mellon Corporation for the year ended December 31, 2016: $\begin{array}{lr}\text { Sales (100\% on credit) } & \$ 1,500,000 \\\text { Sales returns } & 60,000 \\\text { Accounts Receivable (December 31, 2016) } & 250,000 \\\text { Allowance for Doubtful Accounts [Credit B al ance] (Before adjustment at December } & \\31,2016 &3,000 \\\text { Estimated amount of uncollectible accounts based on an aging analysis }&31,000\\\end{array}$
-Refer to the information for Mellon Corporation. If Mellon uses the aging of accounts receivable approach to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?

• A) $216,000
• B) $219,000
• C) $222,000
• D) $250,000

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Definitions:

PRS

Political Risk Services; a measure assessing the risk of investing in a country, including factors like government stability and conflict likelihood. If the term was intended to signify something else without context, then NO.

CAPM

The Capital Asset Pricing Model, a finance theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.

International Stocks

Shares of companies located outside the investor's home country, offering a way to diversify investment portfolios across global markets.

Consumption Baskets

A collection of goods and services used to represent what is consumed by a typical household, employed in calculating the cost of living and inflation.