Net realizable value of receivable appearing balance sheet

Assignment Help Financial Accounting

Reference no: EM13825472

On January 1, 2014, the Accounts Receivable and the Allowance for Uncollectible Accounts for Darius Company carried balances of $20,000 and $550 respectively. During the year, the company reported $70,000 of credit sales. There was $400 of receivables written off as uncollectible in 2014. Cash collections of receivables amounted to $74,700. The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance.

The net realizable value of receivables appearing on the 2014 balance sheet will amount to:

a. $14,105

b. $14,155

c .$14,900

d .$15,450

Reference no: EM13825472

Questions Cloud

Find an app that uses device capabilities to provide product : Find an app that uses device capabilities to provide a product that previously couldn't exist. Explain what makes this app important or innovative.

Uses the double-declining-depreciation method : On 2010 July 1, Frick Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Frick uses the double-declining-d..

Prepare the manufacturing statement for company : Use the following information to prepare the manufacturing statement for Forsythe Company for the month ended June 30.

Make normal profits in the long run would motivate entrants : These multiple choice questions related to Economics. The first question is about firms making normal profits in the long run would motivate new entrants into entering the industry

Net realizable value of receivable appearing balance sheet : On January 1, 2014, the Accounts Receivable and the Allowance for Uncollectible Accounts for Darius Company carried balances of $20,000 and $550 respectively. During the year, the company reported $70,000 of credit sales. There was $400 of receivable..

Under the accrual basis of accounting : Fox Auto sold merchandise to a customer for $3,000 on credit on March 10. The customer paid Fox Auto the amount due on March 31. Under the accrual basis of accounting, Fox Auto will recognize the revenue on March 31. The March 10th..

Caselet: katsand wines : Caselet: Katsand Wines

Prepare statement of retained earnings for the year ended : Powder Corporation began operations on January 2, 2013, with a total investment of $150,000 by its stockholders. Net income for its first year of business was $90,000. During 2014 and 2015, net income increased to $188,000 and to $217,000, respective..

Prepare a budgeted income statement for each quarter : The question relates to Basic Accounting and it discuss about preparing sales, purchases and distribution, cash budget, income statement and balance sheet for an organization

User Account

All Pages