Question

At the end of the accounting period, Anderson Company had $4,500 in accounts receivable and $500 in its allowance for doubtful accounts account. Based on this information, the net realizable value of accounts receivable is a. $4,000 b. $4,500 c. $5,000 d. The answer cannot be determined with the information provided. 2. The recovery and collection of an accounts receivable that had previously been written off will a. increase total assets b. decrease total assets c. not affect total assets d. not affect cash flow. 3. On December 31, Year 3, Alpha Company had an ending balance of $200,000 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $300 (credit balance). Alpha estimates uncollectible accounts expense to be 1% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is a. $2,300 b. $2,200 c. $1,700 d. $2,000.

          At the end of the accounting period, Anderson Company had $4,500 in accounts receivable and $500 in its allowance for doubtful accounts account. Based on this information, the net realizable value of accounts receivable is a. $4,000 b. $4,500 c. $5,000 d. The answer cannot be determined with the information provided.

2. The recovery and collection of an accounts receivable that had previously been written off will a. increase total assets b. decrease total assets c. not affect total assets d. not affect cash flow.

3. On December 31, Year 3, Alpha Company had an ending balance of $200,000 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $300 (credit balance). Alpha estimates uncollectible accounts expense to be 1% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is a. $2,300 b. $2,200 c. $1,700 d. $2,000.

Added by William B.

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