A-One Construction
the Following Data Are from the Company's Records

question 124

Multiple Choice

A-One Construction
The following data are from the company's records for Year 1:
$\begin{array}{ll}\text { Accounts receivable -January 1, Year 1 } & \$ 455,000 \\\text { Credit sales during Year 1 } & 900,000 \\\text { Collections from credit customers during Year 1 } & 825,000 \\\text { Customer accounts written off as uncollected during Year 1 } & 15,000\\\text {Allowance for doubtful accounts}\\\text {(after write-off of uncollected accounts) }&2,100\\\text {Estimated uncollected accounts based on an aging analysis}&29,200\end{array}$
-Refer to the figure A-One Construction.What is the balance of accounts receivable at December 31,Year 1?

• A) $440,000
• B) $515,000
• C) $530,000
• D) $545,000

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Definitions:

Variance

A measure of the dispersion or spread of a set of data points, calculated as the average of the squared deviations from the mean.

Mean

A measure of central tendency that is calculated by adding up all the values in a set and then dividing by the number of values.

Standard Deviation

An appraisal of the diversity or spread level exhibited by a collection of figures.

Normally Distributed

Refers to a probability distribution which is evenly shaped around the mean, indicating that occurrences of data close to the mean are more common than occurrences of data distant from the mean.