At the Beginning of 2014,Mark's Sales Had the Following Ledger

question 62

Multiple Choice

At the beginning of 2014,Mark's sales had the following ledger balances: During the year there were $450,000 of credit sales,$460,000 of collections,and $3,700 of write-offs.At the end of the year,Mark's adjusted for uncollectible account expense using the aging method,and calculated an amount of $1,600 as their estimate of uncollectible accounts.
-At the end of the year,what was the balance in the Accounts receivable?

• A) $10,300
• B) $3,700
• C) $14,000
• D) $21,300

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Definitions:

Fair Values

The selling price of an asset or the payment required to settle a liability in a regulated transaction with market participants, at the time of appraisal.

Net Assets

The total assets of an entity minus its total liabilities, representing the owners' equity.

Fair Market Value

The estimated price at which an asset or service would change hands between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Carrying Value

The original cost of an asset or liability adjusted for depreciation, amortization, or impairment, reflecting its current book value.