Y Company Obtained the Following Balances from Its Computerized Accounting

question 184

Multiple Choice

Y Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments: The company estimates that 2% of net sales will be uncollectible.After the correct adjusting entry has been made,what is the Net accounts receivable on the year-end balance sheet?

• A)This is a trick question.Accounts receivable appear on the income statement,not the balance sheet.
• B)$24,000
• C)$22,000
• D)$27,000

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Definitions:

Expected Revenue

Expected revenue is the amount of money a business anticipates earning over a specific period, based on forecasted sales volumes and prices.

Rationally

Making choices that are consistent and in line with one's self-interest, guided by the use of reason and available information.

Sealed-Bid

A type of auction or tender where bidders submit confidential offers, and usually, the highest bid wins without the bids being disclosed to other participants.

Second-Price Auction

In a second-price auction, the highest bidder wins but pays the price bid by the second-highest bidder, encouraging participants to bid their true value.