reduction in the allowance in the financial statements. Which of the following explains84. An increase in an allowance for receivables of $8,000 has been treated as aACCA IntroductionVũ Ha ThenhA.Irrecoverable debtsВ.ReceivablesReceivablesC.Irrecoverable debtsAllowance for receivablesReceivablesD.ReceivablesAllowance for receivablesthe resulting effects?A. Net profit is overstated by $16,000, receivables overstated by $8,000B. Net profit understated by $16,000, receivables understated by $16,000C. Net profit overstated by $16,000, receivables overstated by $16,000D. Gross profit overstated by $16,000, receivables overstated by $16,00085. At 1 January 20X1, there was an allowance for receivables of $3,000. During theyear, $1,000 of debts were written off as irrecoverable, and $8,00 o debts previouslywritten off were recovered. At 31 December 20X1, it was decided to adjust theallowance for receivables to 5% of receivables which are $20,000.What is the total receivables expense for the year?

The question is multiple choice question Required Choose the Correct Option.

ALCA ntrouctionP T A. Irrecoverable debts В. Receivables Receivables Irrecoverable debts C. Allowance for receivables Receivables D. Receivables Allowance for receivables 84. An increase in an allowance for receivables of $8,000 has been treated as a reduction in the allowance in the financial statements. Which of the following explains the resulting effects? A. Net profit is overstated by $16,000, receivables overstated by $8,000 B. Net profit understated by $16,000, receivables understated by $16,000 V C. Net profit overstated by $16,000, receivables overstated by $16,000 D. Gross profit overstated by $16,000, receivables overstated by $16,000 85. At 1 January 20X1, there was an allowance for receivables of $3,000. During the year, $1,000 of debts were written off as irrecoverable, and $8,00 o debts previously written off were recovered. At 31 December 20X1, it was decided to adjust the allowance for receivables to 5% of receivables which are $20,000. What is the total receivables expense for the year?

ALCA ntrouctionP T A. Irrecoverable debts В. Receivables Receivables Irrecoverable debts C. Allowance for receivables Receivables D. Receivables Allowance for receivables 84. An increase in an allowance for receivables of $8,000 has been treated as a reduction in the allowance in the financial statements. Which of the following explains the resulting effects? A. Net profit is overstated by $16,000, receivables overstated by $8,000 B. Net profit understated by $16,000, receivables understated by $16,000 V C. Net profit overstated by $16,000, receivables overstated by $16,000 D. Gross profit overstated by $16,000, receivables overstated by $16,000 85. At 1 January 20X1, there was an allowance for receivables of $3,000. During the year, $1,000 of debts were written off as irrecoverable, and $8,00 o debts previously written off were recovered. At 31 December 20X1, it was decided to adjust the allowance for receivables to 5% of receivables which are $20,000. What is the total receivables expense for the year?

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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