Accounts Receivable Has a Balance of $5,000 and the Allowance

question 102

Multiple Choice

Accounts receivable has a balance of $5,000 and the Allowance for Bad Debts has a credit balance of $440.The allowance method is used.What is the net realizable value of Accounts Receivable after a $160 account receivable is written off?

• A)$4,400
• B)$4,720
• C)$4,560
• D)$5,000

---

Definitions:

Optimum Level

The most advantageous condition or degree of something where the optimal balance or efficiency is achieved.

Fixed Annual Fee

A fixed annual fee is a set amount charged yearly for access to a product or service, unrelated to usage levels.

Trash Disposal

involves the collection, processing, managing, and recycling or disposal of waste materials produced by human activity.

Efficient Recycling

The process of collecting, processing, and reusing materials in the most cost-effective, environmentally friendly, and resource-efficient manner.