A Company's Accounts Receivable Balance After Posting Net Collections from Customers

question 50

Multiple Choice

A company's accounts receivable balance after posting net collections from customers for 2012 is $150,000.Management feels that uncollected accounts should be based on the following aging of accounts receivable and uncollected percentages.There are $100,000 that are 1-30 past due at 2% and $50,000 that are 31 to 60 days past due at 10%.The net realizable value of the accounts receivable is

• A)$147,500
• B)$148,000
• C)$150,000
• D)$143,000

---

Definitions:

Unit Price

The cost of a single unit of product or measure, which enables comparison of costs among different sizes or types of packages.

Unit Variable Cost

The cost associated with producing one additional unit of a product, which includes materials, labor, and other variable costs.

Break-even Chart

A graphical representation showing the point at which total costs and total revenue are equal, thus indicating no profit or loss.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.