CK Inc. had net sales in 2020 of $800,000. At Dec. 31, 2020, the following information...

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CK Inc. had net sales in 2020 of $800,000. At Dec. 31, 2020, the following information was listed which was about the balances in selected accounts before adjusting entries: Accounts receivable credit balance: Allowance for doubtful accounts debit balance: $1,500 Estimated uncollectable receivable: 2% of net sales 1. At Dec. 31, 2020, on the CK Inc.'s statement of financial position, what is the cash realizable value of the receivables? 2. Please summarize and describe the direct write-off method and the allowance method of recognizing bad debt expense, and please list the reasons why allowance method is preferable in accordance with IFRS. $150,000 CK Inc. had net sales in 2020 of $800,000. At Dec. 31, 2020, the following information was listed which was about the balances in selected accounts before adjusting entries: Accounts receivable credit balance: Allowance for doubtful accounts debit balance: $1,500 Estimated uncollectable receivable: 2% of net sales 1. At Dec. 31, 2020, on the CK Inc.'s statement of financial position, what is the cash realizable value of the receivables? 2. Please summarize and describe the direct write-off method and the allowance method of recognizing bad debt expense, and please list the reasons why allowance method is preferable in accordance with IFRS. $150,000

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1 At Dec 31 2020 on the CK Incs statement of financial position the cash realizable value of the rec... View the full answer