Exercise 9-3 Determining ratio effects of write-offs (LO9-2) Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account: Current assets Accounts receivable Allowance for credit losses Current liabilities Required: Calculate the following amounts or ratios and determine the relationship between the amount or ratio before the write-off (x) with the amount or ratio after the write-off (y): 1. Current ratio 2. Net accounts receivable balance 3. Gross accounts receivable balance $30,000 3,300 300 10,000 :1

Exercise 9-3 Determining ratio effects of write-offs (LO9-2) Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account: Required: Calculate the following amounts or rotios and determine the relationship between the amount or ratio before the write-off (x) with the amount or ratio after the write-off (i)