Refer to questions 6 and 7. Early the following year, Harper wrote off ($ 150) of old
Question:
Refer to questions 6 and 7. Early the following year, Harper wrote off \(\$ 150\) of old receivables as uncollectible. The balance in the Allowance account is now The next four questions use the following data:
On August 1, 2019, Maritimes Ltd. sold equipment and accepted a six-month, \(9 \%, \$ 10,000\) note receivable. Maritimes's year-end is December 31.
Questions 6
Accounts Receivable has a debit balance of \(\$ 3,200\), and (1) the Allowance for Uncollectible Accounts has a credit balance of \(\$ 300\). A \(\$ 100\) accounts receivable is written off. What is the amount of net receivables (net realizable value) after the write off?
a. \(\$ 2,800\)
b. \(\$ 2,900\)
c. \(\$ 3,000\)
d. \(\$ 3,100\)
Questions 7
Refer to question 6. The balance of Allowance for Uncollectible Accounts, after adjustment, will be
a. \(\$ 100\).
b. \(\$ 200\).
c. \(\$ 300\).
d. impossible to determine from the information given.
Step by Step Answer:
Financial Accounting
ISBN: 9780135433065
7th Canadian Edition
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin