All Star Auto Has an Accounts Receivable Balance After Posting

question 134

Multiple Choice

All Star Auto has an accounts receivable balance after posting net collections from customers for 2012 of $180,000.The customers took advantage of sales discounts of $15,000.Management aged the accounts receivable and estimate for uncollected account percentages as follows: $\begin{array}{ll}\$ 90,000 & \text { Current at } 2 \% \\\$ 50,000 & 1-30 \text { days past che at } 5 \% \\\$ 30,000 & 31-60 \text { days past due at } 10 \% \\\$ 10,000 & 60+\text { days past due at } 25 \%\end{array}$ The net realizable value of the accounts receivable is

• A)$173,200
• B)$170,200
• C)$172,700
• D)$180,000

Realize the impact of one's negotiation reputation and how to protect it.

Understand the paradoxes inherent in negotiation strategies.

Acknowledge the variety of factors (tangible and intangible) that influence negotiation behavior.

Understand the concept and significance of BATNA (Best Alternative to a Negotiated Agreement) in negotiation.

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Definitions:

Expected Activity

The anticipated level of operations or output, often used in budgeting and planning.

Predetermined Overhead Rate

A calculated estimate used for allocating overhead costs to products or services, based on an established measure such as labor hours or machine usage, facilitating budgeting and financial planning.

Activity-Based Costing

A strategy for attributing overhead and indirect expenditures to associated services and products, determined by the activities demanded by each.

Estimated Overhead Cost

An approximation of the indirect costs associated with production, used for budgeting and pricing purposes.