Find the Amount Paid by Each of the Multiple Carriers

question 78

Multiple Choice

Find the amount paid by each of the multiple carriers.
-The Robinson Company had an insured fire loss of $708,000. It had insurance coverage as follows: Company A, $725,000; Company B, $500,000; and Company C, $200,000. Find the amount paid by
Each carrier assuming that the coinsurance requirement had been met.

• A)$364,350.88, $252,561.40, $91,087.72
• B)$358,140.35, $244,280.70, $105,578.95
• C)$362,280.70, $258,771.93, $86,947.37
• D)$360,210.53, $248,421.05, $99,368.42

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Definitions:

Allowance for Doubtful Accounts

This is a contra account that reduces accounts receivable to reflect the estimated amount of debts that may not be collected.

Accounts Receivable

Financial obligations of customers to a firm for delivered or utilized goods or services that remain unpaid.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.

Uncollectible Receivables

Amounts owed to a company that it does not expect to collect and thus considers a loss.