The Balance of Accounts Receivable, Net of the Allowance Account

question 35

Multiple Choice

The balance of Accounts Receivable, net of the allowance account, is $35,000 before the write-off of a $2,800 account. What is the Accounts Receivable balance, net of the allowance account, after the write-off?

• A) $35,000
• B) $32,200
• C) $2,800
• D) $37,800

---

Definitions:

Sufficient Cash

A financial state indicating that a business or individual possesses enough liquid assets to meet operational expenses and financial obligations.

Dividend Amount

The sum of money paid by a corporation to its shareholders out of its profits or reserves.

Preferred Stock

Preferred stock is a type of stock that provides holders with priority over common stockholders regarding dividends and asset liquidation, typically without voting rights.

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.