Haven Company Began 2012 with a Balance in Accounts Receivable

question 114

Essay

Haven Company began 2012 with a balance in Accounts Receivable of $28,000 and a balance in the Allowance for Doubtful Accounts of $1,050.The following events occurred during 2012:
1.Recognized $107,000 of revenue on account
2.Collected $104,500 from accounts receivable
3.Wrote off as uncollectible $920 of accounts receivable
4.Recognized uncollectible accounts expense of $1,070 for the year
Required:
a.What was the net realizable value of Haven's accounts receivable at the beginning of the year?
b.What was Haven's balance in Accounts Receivable on December 31,2012?
c.What was the balance in the Allowance for Doubtful Accounts on December 31,2012?
d.What was the net realizable value of Haven's accounts receivable on December 31,2012?

Understand the benefits and impacts of effective sourcing decisions.

Apply concepts of supply chain management to real-world scenarios.

Analyze demand distributions to make informed supply chain decisions.

Calculate expected understock quantities in supply chain scenarios.

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Definitions:

Buccinator

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The accumulation of fluid in the peritoneal cavity, causing abdominal swelling, often a result of liver disease or cancer.

Abdomen

Belly, between the thorax and the pelvis.

Chronic Diarrhea

is a condition characterized by loose or watery stools that lasts for at least four weeks.