16. Gatland recorded uncollectible accounts expense of $30,000 and wrote off accountsreceivable of $25,000 during the year. The net effect of these two transactions on working capitalwas a decrease of:a.$55,000.b. $30,000.c.$25,000.d. $5,000.

The objective of the question is to determine the net effect of the two transactions on working…

Answered: 16. Gatland recorded uncollectible…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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16. Gatland recorded uncollectible accounts expense of $30,000 and wrote off accounts receivable of $25,000 during the year. The net effect of these two transactions on working capital was a decrease of: a. $55,000. b. $30,000. c. $25,000. d. $5,000.