An Analysis and Aging of Accounts Receivable of the Gibson

question 75

Multiple Choice

An analysis and aging of accounts receivable of the Gibson Company at December 31,2014,showed the following:

Compute the net realizable value of the accounts receivable of Gibson Company at December 31,2014.

• A)$804,000
• B)$799,200
• C)$723,200
• D)$727,200

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Definitions:

Blocked Entry

A condition in a market where barriers prevent new firms from entering, often leading to reduced competition and allowing existing firms to maintain higher prices and profits.

Price Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Demand

The desire for a particular good or service combined with the willingness and ability to pay for it.

Ben & Jerry's

A popular American company known for its high-quality, creatively flavored ice creams, frozen yogurts, and sorbets.