Y Company Obtained the Following Balances from Its Computerized Accounting

question 16

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)$25,300
• D)$27,000

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Definitions:

Fixed Costs

Fixed expenses that are unaffected by production or sales volumes, encompassing costs like rent, employee salaries, and insurance fees.

Variable Costs

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Break-even Sales

The amount of revenue required to cover both the variable and fixed costs of production, leading to a situation where a business makes neither profit nor loss.

Variable Costs

Costs that vary directly with the level of production output.