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Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account: Current assets $ 30,000 Accounts receivable 3,300 Allowance for credit losses 300 Current liabilities 10,000 Required: Calculate the following amounts or ratios and determine the relationship between the amount or ratio before the write-off (x) with the amount or ratio after the write-off (y): Current ratio x equals y Net accounts receivable balance x equals y Gross accounts receivable balance x greather than Y

Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account: Current assets $ 30,000 Accounts receivable 3,300 Allowance for credit losses 300 Current liabilities 10,000 Required: Calculate the following amounts or ratios and determine the relationship between the amount or ratio before the write-off (x) with the amount or ratio after the write-off (y): Current ratio x equals y Net accounts receivable balance x equals y Gross accounts receivable balance x greather than Y

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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Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account:

 

       
Current assets $ 30,000  
Accounts receivable   3,300  
Allowance for credit losses   300  
Current liabilities   10,000  
 

 

Required:

Calculate the following amounts or ratios and determine the relationship between the amount or ratio before the write-off (x) with the amount or ratio after the write-off (y):

 

Current ratio   x equals y  
Net accounts receivable balance   x equals y  
Gross accounts receivable balance   x greather than Y  
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