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
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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