Accounts Receivable Has a Balance of $31,000 and the Allowance

question 11

Multiple Choice

Accounts receivable has a balance of $31,000 and the Allowance for doubtful debts has a credit balance of $3100.The allowance method is used.What is the net realisable value before and after a $2400 Account receivable is written off?

• A)$27,900;$25,500
• B)$25,500;$25,500
• C)$25,500;$30,300
• D)$27,900;$27,900

---

Definitions:

Demand Curve

A diagram illustrating the connection between the price of a commodity and the amount of it consumers want over a set period.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell at different prices, typically upward sloping.

Income

Money received, especially on a regular basis, for work, through investments, or from any other source, used to acquire goods and services.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specific period.