Grandview,Inc

question 59

Multiple Choice

Grandview,Inc.uses the allowance method.At December 31,2018,the company's balance sheet reports Accounts Receivable,Net in the amount of $27,200.On January 2,2019,Grandview writes off a $2,400 customer account balance when it becomes clear that the customer will never pay.What is the amount of Accounts Receivable,Net after the write-off?

• A)$27,200
• B)$2,400
• C)$29,600
• D)$24,800

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Definitions:

Marginal Cost

The increased cost incurred from making one more unit of a product or service.

Average Total Cost

The total cost divided by the quantity of output produced, representing the average cost per unit of output.

Short-Run Supply Curve

A graphical representation showing the quantity of a good or service that producers are willing and able to sell at different prices over a short period, holding other factors constant.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good changes as the production volume changes.