In the First Year of Operations,2016,Ralph's Repair Service Recognized $480,000

question 132

Essay

In the first year of operations,2016,Ralph's Repair Service recognized $480,000 of service revenue 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: a)What amount of cash was collected in 2016?
b)What amount of uncollectible accounts expense was recognized in 2016?
c)What will be Ralph's net realizable value of receivables on the December 31,2016 balance sheet?

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Definitions:

Economist's Main Professional Objective

The primary goal of economists is to understand how economies operate and to develop strategies or policies to improve economic welfare and efficiency.

Average Behavior

the typical or mean actions or reactions of a group or individual, serving as a standard or norm for comparing specific behaviors.

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing residential properties to ensure affordable housing.

Secondary Effects

The indirect impacts of an economic event, policy, or decision that may occur as a consequence of the primary effect, affecting different sectors or parts of the economy.