Question

On January 1, Year 1, the Accounts Receivable balance was $29,700 and the balance in the...

On January 1, Year 1, the Accounts Receivable balance was $29,700 and the balance in the Allowance for Doubtful Accounts was $3,500. On January 15, Year 1, an $1,030 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?

Multiple Choice

A $28,670

B $25,170

C $26,200

D $27,230

B)

On January 1, Year 2 Grande Company had a $24,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $84,000 of service on account. The company collected $80,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.

B) What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows?

Multiple Choice

A $80,500

B $78,890

C $84,000

D $60,480

Business   Accounting   
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Homework Answers

Answer #1
1
Accounts Receivable balance, after write off 28670 =29700-1030
Less: Allowance for Doubtful Accounts after write off 2470 =3500-1030
Net realizable value of accounts receivable 26200
Option C is correct
2
Amount of cash flow from operating activities on the Year 2 statement of cash flows = $80500
The amount of cash collected from accounts receivable is the only transaction in the operating activities
Option A is correct
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