Accounts Receivable Has a Balance of $30,000 and the Allowance

question 103

Multiple Choice

Accounts receivable has a balance of $30,000 and the Allowance for Bad Debts has a credit balance of $3,000. The allowance method is used. What is the net realizable value before and after a $2,000 Account Receivable is written off?

• A)$27,000; $27,000
• B)$14,300; $14,300
• C)$16,000; $15,940
• D)$16,000; $16,000

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Definitions:

Potential Predators

Organisms that could potentially hunt and consume other organisms as their source of food.

Species Richness

A measure of the number of different species present in a specific ecological community or habitat.

Community Stability

The ability of an ecosystem to maintain its structure and function over time, despite the presence of stressors or disturbances.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.