On January 1, 2014 the Accounts Receivable and the Allowance

question 88

Multiple Choice

On January 1, 2014 the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $30,000 and $500, respectively. During the year the company reported $75,000 of credit sales. There were $550 of receivables written-off as uncollectible in 2014. Cash collections of receivables amounted to $74,550. The company estimates that it will be unable to collect one percent (1%) of credit sales.
The net realizable value of receivables appearing on the December 31, 2014 balance sheet will amount to:

• A) $29,200.
• B) $30,450.
• C) $29,750.
• D) $24,300.

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Definitions:

Municipal Dump

A designated area operated by a local government where waste and trash are disposed of and sometimes processed or recycled.

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Improvements

Improvements refer to changes or additions made to property or assets that enhance their value, utility, or appearance.