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doubtful of collection.

doubtful of collection.

FINANCIAL ACCOUNTING
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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answer 8 and 9
The unadjusted trial balance of Entity A shows the following: Use the following information for the next two questions: Accounts receivable Allowance for bad debts 280,000 Equipment Accumulated depreciation 360,000 144,000 Additional information: • 3% of the total accounts receivable are doubtful of collection. The equipment was acquired 2 years ago and was estimated to have a 5-year useful life. 8. What is the adjusted (net) carrying amount of accounts receivable to be presented in the year-end statement of financial position? a. 271,600 b. 288,400 c. 280,000 d. 276,100 9. What is the adjusted (net) carrying amount of equipment to be presented in the year-end statement of financial position? a. 360,000 b. 216,000 c. 144,000 d. 72,000
Transcribed Image Text:The unadjusted trial balance of Entity A shows the following: Use the following information for the next two questions: Accounts receivable Allowance for bad debts 280,000 Equipment Accumulated depreciation 360,000 144,000 Additional information: • 3% of the total accounts receivable are doubtful of collection. The equipment was acquired 2 years ago and was estimated to have a 5-year useful life. 8. What is the adjusted (net) carrying amount of accounts receivable to be presented in the year-end statement of financial position? a. 271,600 b. 288,400 c. 280,000 d. 276,100 9. What is the adjusted (net) carrying amount of equipment to be presented in the year-end statement of financial position? a. 360,000 b. 216,000 c. 144,000 d. 72,000
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