Question
Alvala Corporation does business throughout Europe. The company builds and sells equipment used in manufacturing pharmaceuticals. On December 31, 2022, Alvala's accounts receivable are as
Alvala Corporation does business throughout Europe. The company builds and sells equipment used in manufacturing pharmaceuticals. On December 31, 2022, Alvala's accounts receivable are as follows:
Individually significant receivables
Demm Company $ 80,000
Ralls Corp $ 200,000
Rafack Co. $ 120,000
Mell Inc. $ 100,000
Other receivables $ 500,000
Total $ 1,000,000
Alvala Corpration believes that Demm Company's receivable is impaired by $ 40,000 and Mell Inc.'s receivable is completely impaired. Receivables of Ralls Corp and Rafack Corp are not considered imparied. Alvala determines that a composite rate of 2% is appropiate to measure impairments on the other receivables What is the total impairment of receivables for Alvala Corporation?
Step by Step Solution
3.52 Rating (165 Votes )
There are 3 Steps involved in it
Step: 1
Impairment on receivable from Finely Company 40000 Impairment on ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Applied Corporate Finance
Authors: Aswath Damodaran
4th edition
978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931
