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

question 17

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 of Accounts Receivable 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:

Production Budget

A financial plan that estimates the cost of producing a set number of units within a specified time period.

Direct Labor Cost Budget

A budget that estimates direct labor hours and related cost needed to support budgeted production.

Direct Materials Purchases Budget

A financial plan that estimates the raw materials needed for production and the cost of these materials for a future period.

Sales Budget

A financial plan that estimates the expected revenues from sales for a specific period, serving as a component of a company's overall budgeting process.