Based on the Aging of Its Accounts Receivable at December

question 11

Multiple Choice

Based on the aging of its accounts receivable at December 31,Quanto Company determined that the net realizable value of the receivables at that date is $760,000.Additional information is as follows: Quanto's doubtful accounts expense for the year ended December 31 is

• A) $80,000.
• B) $96,000.
• C) $120,000.
• D) $160,000.

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Definitions:

Forensic Accounting

Forensic Accounting is the practice of using accounting, auditing, and investigative skills to assist in legal matters and conduct investigations into fraud or financial discrepancies.

Income Statement

An income statement is a financial statement that shows a company's revenues and expenses over a specific period, highlighting net profit or loss.

Revenues

Revenue earned through the primary activities of a business, typically from selling products and services to its consumers.

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities.