Following the Completion of an Aging Analysis,the Accountant for Liberty

question 22

Multiple Choice

Following the completion of an aging analysis,the accountant for Liberty estimated that $1,100 of the receivables would be uncollectible.What would the net realizable year-end balance sheet be?

• A)$28,800.
• B)$28,900.
• C)$29,900.
• D)$30,100.

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Definitions:

Production Costs

The total expenses incurred in the process of producing or manufacturing goods and services, including materials, labor, and overhead.

Opportunity Costs

Opportunity costs represent the benefits a person or business misses out on when choosing one alternative over another.

Implicit Costs

The opportunity costs of using resources that a firm already owns, representing the income the firm foregoes by using those resources internally rather than renting or selling them.

Explicit Costs

Explicit costs are direct, out-of-pocket payments for resources or services needed for production, such as wages, rent, and materials; they're easily quantifiable and recorded.