A Company Who Uses the Allowance Method, Writes-Off a Receivable

question 128

Multiple Choice

A company who uses the allowance method, writes-off a receivable of $2,000. Prior to the journal entry, the balance in the Allowance for Uncollectible Accounts was $18,432. After the entry to write-off the receivable is made, the balance in the Allowance for Uncollectible Accounts will be:

• A) $2,000.
• B) $12,432.
• C) $16,432.
• D) $20,432.

Describe the significance of endorsements on the status of negotiable instruments.

Understand the concept of negotiability concerning conditional promises and fixed sums.

Understand the concept and implications of express warranties in sales and lease contracts.

Comprehend the legal requirements and effects of the Magnuson-Moss Act on warranties.

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Definitions:

Constructs

Theoretical entities or concepts that are not directly observable but are used to describe and explain observable phenomena.

General Name

Refers to a broad designation or category that encompasses specific instances or entities.

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.

Cluster Together

The act of grouping a set of objects in such a way that objects in the same group are more similar to each other than to those in other groups.