The Miller Company earned $129,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $85,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.The net realizable value of Miller's receivables at the end of Year 2 was:
A. $41,450.
B. $44,000.
C. $47,870.
D. $40,130.
Answer: D
You might also like to view...
Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts,
A) total assets decrease. B) liabilities increase. C) total assets are unchanged. D) net income is unchanged.
A researcher investigating the amount of food waste in the typical four-person family plans to sift through the garbage of a small sample of representative families. This method is an example of an unobtrusive survey
Indicate whether the statement is true or false
Heartbeat Industries has recently introduced a new production method that will make the production of their medical devices more cost-effective. Which of the following will most likely be the result of this innovation?
A. destabilizes a steeper learning curve B. moves down the existing learning curve C. stabilizes the existing learning curve D. jumps to a steeper learning curve
A change in an accounting estimate is:
A. Considered an error in the financial statements. B. Reflected in current and future years' financial statements, not in prior statements. C. Not allowed under current accounting rules. D. Reflected in past financial statements. E. Reflected in future financial statements and also requires modification of past statements.