A Company Reports Accounts Receivable on the Balance Sheet at a Net

question 121

Multiple Choice

A company reports accounts receivable on the balance sheet at a net realizable value of $586,592. If their gross receivables were $612,854, then the balance in the Allowance for Uncollectible Accounts is:

• A) $26,262.
• B) $38,745.
• C) $73,812.
• D) cannot be determined from the facts.

---

Definitions:

Vroom

Refers to Victor Vroom's expectancy theory which suggests that individual motivation is influenced by the expected outcomes of their actions.

Locke

Refers to John Locke, an influential 17th-century English philosopher known for his work on political philosophy, epistemology, and education.

Self-Efficacy Theory

A psychological theory proposing that individuals' belief in their ability to perform a task influences their motivation and performance in that task.

Externally Imposed Goals

Objectives or targets set by outside entities, such as regulators or parent companies, that an organization needs to achieve.