Alvala Corporation does business throughout Europe. The company builds and sells equipment used in manufacturing pharmaceuticals. On December 31, 2022, Alvala's accounts receivable are as follows:

Individually significant receivables

Demm Company $ 80,000

Ralls Corp $ 200,000

Rafack Co. $ 120,000

Mell Inc. $ 100,000

Other receivables $ 500,000

Total $ 1,000,000

Alvala Corpration believes that Demm Company's receivable is impaired by $ 40,000 and Mell Inc.'s receivable is completely impaired. Receivables of Ralls Corp and Rafack Corp are not considered imparied. Alvala determines that a composite rate of 2% is appropiate to measure impairments on the other receivables What is the total impairment of receivables for Alvala Corporation?

Answer rating: 100% (QA)

Impairment on receivable from Finely Company 40000 Impairment on ... View the full answer