Advanced Technology Reported the Following on Its Balance Sheet at December

question 65

Essay

Advanced Technology reported the following on its balance sheet at December 31,2012:
Accounts receivable, less Allowance for Doubtful Accounts of $\$ 20,500$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\$ 580,200$ A) What is the net realizable value of the company's accounts recervable?
B) What is the balance of the accounts receivable account?
C) Are you able to determine whether the company uses the allow ance method or the direct write off method for bad debts? Why or why not?

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Definitions:

Material B39U

is a specific type of raw material, possibly designated for use in a specialized manufacturing process, but without further context, its exact nature is unclear.

Supervisor's Salary

The amount paid to the individual overseeing and managing a group of employees or a particular department within a company.

Net Operating Income

Net operating income reflects the profit a company makes from its operations, exclusive of taxes and interest.

Variable Costs

are expenses that change in proportion to the activity of a business, such as raw material costs, which increase with the level of production.