If a company fails to record estimated bad debts expense at the end of the accounting period?

Select one:

a.

Receivables are understated

b.

Revenues are understated

c.

Expenses are understated

d.

Receivables are overstated

e.

Both c and d are correct

2

The following information relates to product J:

Cost $9.00

Expected selling price $12.50

Marketing & delivery cost $1.40

Replacement cost $9.50

The net realisable value (NRV) of product J is

Select one:

a.

$11.10

b.

$12.50

c.

$9.50

d.

$13.90

e.

$9.00