Wednesday
August 20, 2014

Homework Help: Financial Accounting

Posted by Anonymous on Tuesday, April 30, 2013 at 4:25am.

Use the following information to answer multiple-choice questions 5 and 6. At the end of the year, before any adjustments are made, the accounting records for Sutton Company show a balance of $100,000 in accounts receivable. The allowance for uncollectible accounts has a remaining balance of $2,000. (This means last year’s estimate was too large by $2,000.) The company uses accounts receivable to estimate bad debts expense. An analysis of accounts receivable results in an estimate of $27,000 of uncollectible accounts.
5. The bad debts expense on the income statement for the year would be
a. $27,000.
b. $25,000.
c. $23,000.
d. $29,000.
6. Net realizable value of the receivables on the year-end balance sheet would be
a. $100,000.
b. $75,000.
c. $73,000.
d. $77,000.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

financial - Is it possible for a business to prepare financial statements using ...
Accounting - Much of accounting is directed at servicing the information needs ...
accounting - Identify at least three external users of accounting information ...
Accounting - Identify at least three external users of accounting information ...
accounting - The choice of accounting or a fiscal year end can affect the ...
accounting - Assume that you are the president of Gaslight Company. At the end ...
Accounting - Can anyone tell me if this is correct? I have been hired into a new...
accounting - ABC Company uses cash basis accounting for its records. During 2010...
accounting - please help to get the correct of questions beloww..thanks i hope ...
accounting - I have been hired into a new company to oversee the accounting ...

Search
Members