Use the Following to Answer Questions

question 24

Multiple Choice

Use the following to answer questions
On January 1,2016,Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500,respectively.During the year Kincaid reported $72,500 of credit sales.Kincaid wrote off $550 of receivables as uncollectible in 2016.Cash collections of receivables amounted to $74,550.Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
-The net realizable value of receivables appearing on Kincaid's 2016 balance sheet will amount to:

• A)$29,075.
• B)$27,725.
• C)$28,950.
• D)$28,400.

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Definitions:

Entropy

A measure of disorder or randomness in a closed system, often used in physics and information theory.

Equivalence

The state of being equal in value, function, or meaning.

Psychic Value

The importance or significance that an individual attaches to objects, events, or relationships as per their emotional or unconscious investment.

Desires

Strong feelings of wanting or wishing for something to happen or be the case.