At the End of Its First Year of Operations, and Before

question 107

Multiple Choice

At the end of its first year of operations, and before the adjusting entries at December 31, a company had a balance in accounts receivable of $250,000. The adjustments included a $2,000 write-off of an uncollectible account and recording bad debt expense of $3,500. What should the company report on its balance sheet at December 31, as net accounts receivable?

• A) $246,500
• B) $248,000
• C) $248,500
• D) $256,000

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Definitions:

N/um

A term from the Khoisan language referring to a sacred, spiritual power believed to reside in healers and used during healing dances and rituals.

Animism

The belief that nature is enlivened or energized by distinct personalized spirit beings separable from bodies.

Free-Ranging Spirits

Beliefs or practices in some cultures that involve spirits or entities which move freely in the world, unconfined to specific locations, objects, or rituals.

Patriarchic Religion

A religious system or society in which men hold the primary power and predominate in roles of leadership, moral authority, social privilege, and control of property.