Question 6 6.66 pts At the beginning of the year, a company had accounts receivable of...
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Question 6 6.66 pts At the beginning of the year, a company had accounts receivable of $700,000 and an allowance for doubtful accounts with a credit balance of $60,000. During the current year, sales on account were $195,000 and collections on account were $110,000. Also during the current year, the company wrote off $10,000 in uncollectible accounts. At year-end, an analysis of outstanding accounts receivable indicated that the allowance for doubtful accounts should have a $32,000 credit balance so the company records the appropriate year-end adjusting entry. How much did the cash realizable value change during the current year? O $97,000 increase O $114,000 increase O $127,000 increase $103,000 increase O $28,000 decrease Question 6 6.66 pts At the beginning of the year, a company had accounts receivable of $700,000 and an allowance for doubtful accounts with a credit balance of $60,000. During the current year, sales on account were $195,000 and collections on account were $110,000. Also during the current year, the company wrote off $10,000 in uncollectible accounts. At year-end, an analysis of outstanding accounts receivable indicated that the allowance for doubtful accounts should have a $32,000 credit balance so the company records the appropriate year-end adjusting entry. How much did the cash realizable value change during the current year? O $97,000 increase O $114,000 increase O $127,000 increase $103,000 increase O $28,000 decrease
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The question is about calculating the change in the cash realizable value of accounts receivable during the year This involves taking into account the ... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
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