December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers count and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. hich of the following correctly states the effect of recording the collection of the reestablished receivable on April 4, Year 2? Balance Sheet Income Statement Assets 1,050 (1,050) 1,050 1,050 A. B. I. D. 1,050 (1,050) Stockholders' Equity ΝΑ =Liabilities + NA ΝΑ NA ΝΑ 1,050 1,050 NA Revenue ΝΑ 1,050 ΝΑ NA Expense ΝΑ NA (1,050) ΝΑ Net Income ΝΑ 1,050 1,050 ΝΑ Statement of Cash Flows ΝΑ 1,050 OA 1,050 OA 1,050 OA

December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers count and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. hich of the following correctly states the effect of recording the collection of the reestablished receivable on April 4, Year 2? Balance Sheet Income Statement Assets 1,050 (1,050) 1,050 1,050 A. B. I. D. 1,050 (1,050) Stockholders' Equity ΝΑ =Liabilities + NA ΝΑ NA ΝΑ 1,050 1,050 NA Revenue ΝΑ 1,050 ΝΑ NA Expense ΝΑ NA (1,050) ΝΑ Net Income ΝΑ 1,050 1,050 ΝΑ Statement of Cash Flows ΝΑ 1,050 OA 1,050 OA 1,050 OA

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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