Question

Van Dijk Corporation estimates the allowance for uncollectible accounts at 3% of the balance of accounts...

Van Dijk Corporation estimates the allowance for uncollectible accounts at 3% of the balance of accounts receivable. During 2020, Van Dijk wrote off $89,300 of accounts receivable and collected $23,770 on accounts previously written off.  Bad debt expense for 2020 was $169,000. The balance in accounts receivable was $7,280,000 at 12/31/2020. What was the balance in accounts receivable at 1/1/2020?

Multiple Choice

  • $6,807,660

  • $5,250,961

  • $4,623,333

  • $3,831,000

Which of the following is different in terms of its effect on par value per share?

Multiple Choice

  • Stock splits

  • Stock repurchases

  • Stock issuances

  • Stock dividends

Homework Answers

Answer #1
1
Allowance for uncollectible accounts at Dec 31,2020 218400 =7280000*3%
Add: Write off 89300
Less: Collection on accounts previously written off -23770
Less: Bad debt expense -169000
Allowance for uncollectible accounts at Jan 1 ,2020 114930
Balance in accounts receivable at 1/1/2020 3831000 =114930/3%
Option D $3,831,000 is correct
2
Stock splits is different in terms of its effect on par value per share.
Stock splits change the par value per share.
Stock repurchases,Stock issuances,Stock dividends do not affect par value per share.
Stock splits is correct option
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