Accounts Receivable Has a Balance of $8,000, and the Allowance

question 167

Multiple Choice

Accounts Receivable has a balance of $8,000, and the Allowance for Bad Debts has a credit balance of $450. The allowance method is used. What is the net realizable value of Accounts Receivable after a $160 account receivable is written off?

• A) $7,390
• B) $7,710
• C) $7,550
• D) $8,000

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Definitions:

Extraneous Factors

Variables that are not of interest in a study but could affect its outcome.

Experimental Units

Experimental units are the smallest divisions of the experimental subjects that can be independently assigned to treatment groups in a study.

Two-factor ANOVA

A statistical method used to analyze the effects of two independent variables on a single continuous dependent variable, allowing interaction effects to be studied.

Randomized Block Design

A statistical design for experiments that aims to reduce variation by grouping subjects that are similar into blocks before randomly assigning treatments.