The allowance for uncollectible accounts of a company has a balance, before year-end adjustments, of 24.200. After
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Question:
The allowance for uncollectible accounts of a company has a balance, before year-end adjustments, of 24.200€. After a careful review of the collections process, management decided to write-off receivables for an amount of 33.100€. Account receivables has an ending debit balance of 432.000€. The estimate for non-collections that the company has been applying over the last years, has been 5%.
What would be the amount which would reflect on the income statement the effect of all these adjustments taking place in the receivables account at year end?
Select one:
a. 30,500
b. 12,700
c. I don't know
d. 21,600
e. 35,700
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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